kostnad

Kostnad is a term used in economics and accounting to describe the resources that must be sacrificed or foregone to obtain a good or service. In Swedish and related Scandinavian usage, kostnad covers both monetary payments and the value of foregone alternatives. In cost accounting, costs are distinguished from prices and revenues; they represent the resources consumed in production or service delivery.

Costs are commonly classified by behavior and by function. Fixed costs do not change with output in the short term, such as rent or salaries. Variable costs vary with the level of production, such as materials or direct labor. Semi-variable costs contain both fixed and variable components. Total cost equals fixed plus variable costs; average cost is total cost divided by output, and marginal cost is the cost of producing one additional unit.

Other key concepts include opportunity cost, the value of the next best alternative forgone when a choice is made; and sunk cost, a past expense that cannot be recovered and should not influence current decisions.

Costs are central to budget planning, pricing decisions, profitability analysis, and managerial decision making. Different accounting methods aim to allocate costs to products or services, including cost accounting, standard costing, and activity-based costing. Understanding kostnad helps compare alternatives, assess break-even points, and optimize resource use.