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SEC: The abbreviation for Securities and Exchange Commission, which is a federal government agency that regulates the trading of corporate stock to protect investors against unscrupulous practices. Like a number of other federal regulatory agencies, the SEC was established in the 1930s--1934 to be exact. The impetus for its formation was to prevent investors from manipulating the stock market and to prevent other practices that contributed to the 1929 stock market crash. The SEC has all sorts of rules governing the stock market, including information disclosure, insider trading, speculation, and use of credit.
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                           COST: An alternative term for economic or opportunity cost, which is the highest valued alternative foregone in the pursuit of an activity. Opportunity cost is one of the most fundamental concepts used in the study of economics, hence when the term cost is used in the study of economics without modification, it usually means economic or opportunity cost. Because economists like to economize on effort, the succinct term cost is also frequently used in lieu of opportunity cost or economic cost. In fact, whenever the term cost is used in economics, absent of any modifiers, it inevitably means economic or opportunity cost.Starting With ScarcityThe ultimate source of cost is the pervasive problem of scarcity (unlimited wants and needs, but limited resources). Whenever limited resources are used to satisfy one want or need, an unlimited number of other wants and needs remain unsatisfied. Hence pursuing one activity means alternatives are not pursued. Herein lies the essence of cost. Doing one thing prevents doing another.Cost Plus...There are a seemingly endless number of modifiers that can be used with the term cost. Here is a lengthy, but necessarily incomplete list.- Accounting Cost: An actual outlay or expense incurred in production that shows up a firm's accounting statements or records, which may or may not be an opportunity cost.
- Average Cost: The opportunity cost incurred per unit in the production of a good, calculated by dividing the total cost of production by the quantity of output produced
- Explicit Cost: An opportunity cost that involves a money payment and usually a market transaction.
- External Cost: An opportunity that is not included in the market price of a good because it is not included in the supply price.
- Fixed Cost: An opportunity that does not change with changes in the quantity of output produced.
- Historical Cost: An accounting principle stating that expenses are recorded in terms of original or acquisition cost, which may or may not reflect opportunity cost or current market value.
- Implicit Cost: An opportunity cost that does NOT involve a money payment or a market transaction.
- Marginal Cost: The change in total opportunity cost resulting from a change in the quantity of output produced by a firm in the short run.
- Production Cost: The opportunity cost of using labor, capital, land, and entrepreneurship in the production of goods and services.
- Total Cost: The opportunity cost incurred by all of the factors of production used by a firm to produce a good or service, including wages paid to labor, rent paid for the land, interest paid to capital owners, and a normal profit paid to entrepreneurs.
- Variable Cost: An opportunity cost that changes with changes in the quantity of output produced.
This is a modest list at best. Other terms contain the word "cost" include average variable cost, total variable cost, average fixed cost, total fixed cost, total factor cost, average factor cost, and marginal factor cost. Other "cost" terms pop up in the study of economics as attention is directed to specific topics and issues.
Recommended Citation:COST, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 18, 2025].
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BLUE PLACIDOLA
[What's This?]
Today, you are likely to spend a great deal of time searching the newspaper want ads looking to buy either a wall poster commemorating the first day of winter or blue cotton balls. Be on the lookout for rusty deck screws.
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
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"A winner is someone who recognizes his God-given talents, works his tail off to develop them into skills, and uses those skills to accomplish his goals. " -- Larry Bird, basketball player
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SBA
Small Business Administration
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