noninsurable risk A risk that cannot be insured, either because the probability of a loss is too high, or because it cannot

be measured actuarially.... accounting profit Profit before tax. economic profit

The difference between a

company's income

and

economic costs.

actual cost An actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct ma... oppcunity cost A benefit, profit, or value of something that must be given up to acquire or achieve something else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice, or decision has an associated opportunity cost. Explicit cost
Expense that is contractual in nature and definite in amount, such as rent, salaries, wages, or utility bills. Explicit costs are easily recognizable for classification and recording.

Implicity cost The costs associated with an action's tradeoff. It is related to explicit costs, which represent the actual costs of an activity, and represents a cost that is not recorded but instead implied fixed cost A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages. variable cost A periodic cost that varies in step with the output or the sales revenue of a company. marginal cost The increase or decrease in the total cost of a production run for making one additional unit of an item. direct cost An expense that can be traced directly to (or identified with) a specific cost center or cost object such as a department, process, or product. indirect cost An expense (such as for advertising, computing, maintenance, security, supervision) incurred in joint usage and, therefore, difficult to assign to or identify with a specific cost object or cost center (department, function, program). short run cost Period during which only some factors or variables can be changed because there is not enough time to change the others....

long run incremental cost (LRIC) The changes to incremental costs that organizations are able to predict and account for. Examples of long run incremental costs include energy, mainte... cost function A mathematical formula used to predict the cost associated with a certain action or a certain level of output. Businesses use cost functions to forecast the expenses associated with production, in order to determine what pricing strategies to use in order to achieve desired profit margins.