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Business Administration

Business Administration

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Cost

This is the amount of money which has been used in the production of something or by a process. Cost is an important factor in many business calculations.

Costs can be either directly incurred, such as through the purchase of raw materials or advertising space. Alternatively, they can be indirect, such as the costs associated with maintain the security of a business premise.

It is important to know which costs should be included (and how they should be calculated) before using the values in a calculation.

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