BROWSE

Underlying Cost

What is 'Underlying Cost'

Any cost that can be expected within the following budget period. Underlying costs are costs that the company knows it will have to pay out throughout the budget period. Examples would include items such as rent/lease/mortgage, depreciation, utilities, etc. In the aggregate, sometimes the underlying cost can refer to the basic cost of something excluding unusual costs that occur infrequently.

Explaining 'Underlying Cost'

For example, it might cost $1 to produce a widget but an unusal plant shutdown results in costs of $2 per widget in the period. Excluding the unusual costs, the underyling cost would be $1, which is also what the company expects the cost to be going forward.


Further Reading


Viewpoint of Financial Management: Considerations Underlying Cost of Capital
www.tandfonline.com [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Underlying factors of ups and downs in financial leverage overtimeUnderlying factors of ups and downs in financial leverage overtime
journals.sagepub.com [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Option pricing when the underlying asset earns a below-equilibrium rate of return: A noteOption pricing when the underlying asset earns a below-equilibrium rate of return: A note
www.jstor.org [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

IAS 39: Underlying principlesIAS 39: Underlying principles
www.tandfonline.com [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

The market liquidity of DIAMONDS, Q's, and their underlying stocksThe market liquidity of DIAMONDS, Q's, and their underlying stocks
www.sciencedirect.com [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Options trading and the bid-ask spread of the underlying stocksOptions trading and the bid-ask spread of the underlying stocks
www.jstor.org [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Factors underlying the employment effects of financial assistance policiesFactors underlying the employment effects of financial assistance policies
www.tandfonline.com [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Strategic entrepreneurship in New Zealand's state-owned enterprises: underlying elements and financial implicationsStrategic entrepreneurship in New Zealand's state-owned enterprises: underlying elements and financial implications
openrepository.aut.ac.nz [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Macroeconomic impacts of oil prices and underlying financial shocksMacroeconomic impacts of oil prices and underlying financial shocks
www.sciencedirect.com [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …

Transaction cost economics: An assessment of empirical research in the social sciencesTransaction cost economics: An assessment of empirical research in the social sciences
www.cambridge.org [PDF]
… The underlying idea had merit for certain investment pur- poses, although the "trade name" was more … volume of short-term credit over the postwar years, and the respec- tive costs of such … Although such interest is a capital cost, it is neither discernible nor comprehended in the …


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