The Cost is a variable of the economic sector that represents the totality of the economic expenditure of a production, This sum is the most important that is made in the statistics of the companies, since after this, it is established what the price of the manufactured product that will go on sale to the public. The cost represents the investment made for production. In the same way as goods, services also apply this tool to their accounts, since it is established in the same way what will be the use of the monetary goods available in the company to perform its functions.
The cost not only includes that obtained with the materials available for the manufacture of a product, to these must be added the payment that is made to employees for carrying out the action of producing (labor), the cost of the machines and tools that they use to manufacture the product or perform the service, if necessary they should be added to the production costs, travel expenses and any type of transfers or trips that must be made in favor of production and not everything should be left out what is included in housing costs, specifically the place where the good or service is produced. The main function of the cost term is to observe if it is profitablethe execution of plans around the ideas that are had, profits, which are the foreign exchange earned by production, must always be above production costs, in order to contribute to the development of new initiatives that encourage the growth of the company.
The new products that a company can develop carry a previous field study framed in the principles of marketing, with these, a comparison of possible costs is made with possible sales of the same, in this way a concordance is also established with the fact of knowing whether or not it is profitable to invest in said production. It is important to always have everything related to statistics in a company at hand, determine what are the prices, costs, profits and investments in order to have a prosperous domain of the economy that circulates, that is conserved and that is developed for the good of capital.
