The phrase "at cost" means an item is being sold at the price it was acquired for, without any additional markup. The pronunciation of the word "cost" is /kɒst/ in IPA phonetic transcription. This word begins with a voiceless velar plosive /k/, followed by an open-mid back rounded vowel /ɒ/. The word ends with a voiceless alveolar fricative /s/ and a voiceless alveolar plosive /t/. The correct spelling of this phrase is important to ensure that customers understand the price they are paying for a product.
"At cost" is an idiomatic expression primarily used in the context of financial transactions, commerce, and accounting. The term refers to a pricing strategy or method where a product or service is sold for the exact price that it was originally acquired or produced, without any additional markup or profit margin. In other words, it represents the actual cost incurred or invested in order to obtain or create a specific item, excluding any indirect or overhead expenses.
This pricing practice often occurs between affiliated companies or within a single organization, where goods or services are transferred between departments or divisions at the same price they were initially purchased or manufactured. The purpose of selling or transferring items at cost is typically to ensure fairness, transparency, and consistency within the organization or between related entities.
"At cost" can also refer to the situation where an individual or business sells a good or service to a customer without making any profit. This may occur in special situations such as charity events, liquidation sales, or promotional campaigns where the goal is not to maximize profit but rather to achieve other objectives, such as raising funds for a charitable cause or clearing out excess inventory.
Overall, "at cost" represents a pricing approach where the final selling price is equivalent to the direct expenses associated with acquiring or producing a particular item, disregarding any additional charges or anticipated profit.
The term "at cost" is derived from the noun "cost", which originated from the Old French word "coste" meaning "expense" or "cost". It dates back to the 14th century in English and is derived from the Latin word "costa" meaning "rib" or "side". Over time, "cost" came to refer to the amount of money required to produce or acquire something. The use of "at cost" implies selling something at the price it was acquired for, without any additional profit added.