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Cost Analysis
A process that breaks down a cost
summary into individual parts and studies
each part to determine the costs actually
incurred or estimated costs expected to be
incurred. See Also: Cost Breakdown.
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Cost and Freight (C & F)
A quoted price that
includes both the cost of an item and
transportation charges to the destination;
commonly used when shipping via ocean
freight.
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Cost Avoidance
Action that avoids incurring
costs in the future, also known as "soft
savings," and, therefore, not reflected in
financial statements.
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Cost Breakdown
A process that separates the
total cost of a good or service into individual
parts and assigns a portion of the total cost to
each individual component, (e.g., overhead
and profit margin). See also: Cost Analysis.
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Cost Containment
Reduction of expenses or
prevention of unnecessary spending to
remain within budget or to increase profits.
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Cost Contract
A cost-reimbursement contract in
which the contractor receives no fee. See
also: Cost-Reimbursement Contract.
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Cost Driver
Internal or external forces that may
impact cost.
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Cost Element
A direct or indirect cost of
providing a good, service, or construction,
such as labor, materials, fringe benefits, or
travel.
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Cost Estimate
A forecasted amount, as
distinguished from an actual outlay, based on
related cost information available at the time
and anticipated future conditions. The
process of calculating the probable cost of a
job.
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Cost Objective
A function, organizational unit, or
contract for which costs are to be determined
and cost data accumulated.
