Professional Documents
Culture Documents
Assignment 2
Assignment 2
2. What is cost?
A cost is the worth of money that has been expended to produce
something or provide a service and is therefore no longer available for
use in production, research, retail, and accounting. In the case of an
acquisition cost, the money spent on the acquisition is considered the
cost.
Cost is the sum of money needed to produce, market, and sell goods
and services or to purchase assets. A cost is added to costs when
anything is sold or consumed. The charge to expense in the case of an
asset may be postponed for quite some time.
3. What is quality?
Quality refers to how good something is compared to other similar
things. In other words, its degree of excellence.