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Explain the money cost concept briefly

Explain the money cost concept briefly.

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Money Cost: It implies the total money expenses incurred through a business firm upon the different items entered in the production of an exact product. For case in point, money payments made upon wages and salaries to managerial and workers staff, payments for raw materials purchased, expenses upon light and power, transportation, insurance, advertisement; as well as payments made on the buy of machinery and equipments and so forth constitute money cost of production. This type of cost concept is also termed as nominal cost.

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