Cash Cost

Business, Legal & Accounting Glossary

Definition: Cash Cost

Cash Cost

Full Definition of Cash Cost

A process of cash basis accounting that categorizes costs as they paid in cash and considered on the general ledger at the point of sale. This occurs when a business pays for sing cash or checks but not when using credit. Credit costs paid would not be posted to the general ledger until the actual cash payment has been received. The method is opposite of the accrual cost recognition method which has a direct impact on the operating cash flow figure. Companies now tend to shy away from using cash cost methods since the accrual method will include credit as well as cash transactions at the same time.

Cite Term

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Page URL
Modern Language Association (MLA):
Cash Cost. Payroll & Accounting Heaven Ltd.
December 06, 2021
Chicago Manual of Style (CMS):
Cash Cost. Payroll & Accounting Heaven Ltd. (accessed: December 06, 2021).
American Psychological Association (APA):
Cash Cost. Retrieved December 06, 2021
, from website:

Definition Sources

Definitions for Cash Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.