HARD COST Meaning and
Definition
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Hard cost refers to the direct expenses incurred during the production or construction of a product or the execution of a project. It is a financial term commonly used in business and project management to differentiate these specific expenses from other indirect costs and overheads. Hard costs are typically tangible and quantifiable expenses that can be easily attributed to a particular product or project.
In the context of manufacturing, hard costs may include the raw materials, components, equipment, machinery, and labor directly involved in the production process. For construction projects, hard costs may include the materials, labor, equipment rentals, permits, and subcontractor costs directly associated with building or renovating structures.
Hard costs are essential for determining the profitability and overall budget of a project. They are easy to track and allocate to specific tasks or items, allowing for accurate cost estimation and control. By keeping a close eye on hard costs, businesses and project managers can effectively manage expenses, ensure financial accountability, and maintain profitability.
In contrast to hard costs, soft costs encompass indirect expenses that are not directly tied to a specific project task or item. Examples of soft costs include design fees, legal fees, permits, project management fees, and marketing expenses. Although not as tangible as hard costs, soft costs are equally important for comprehensive cost management and budgeting.
Common Misspellings for HARD COST
- gard cost
- bard cost
- nard cost
- jard cost
- uard cost
- yard cost
- hzrd cost
- hsrd cost
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- hqrd cost
- haed cost
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- ha5d cost
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- hars cost
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- harc cost
- harf cost
Etymology of HARD COST
The term "hard cost" originated in the field of construction and project management. Its etymology can be traced back to the early 20th century.
The word "hard" in this context refers to something that is tangible, firm, and definite. It implies that the cost is fixed and doesn't involve any uncertainties or variations. It is also used to distinguish it from other types of costs, such as indirect or soft costs.
The word "cost" itself derives from the Latin word "costus", meaning "rib, side, or body". It entered the English language in the 13th century and initially referred to the price or expenditure of something.
In the construction industry, a hard cost refers to the direct expenses that can be specifically allocated to a particular project or task. These costs typically include labor, materials, equipment, permits, subcontractor fees, and other similar expenses.
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