What Does "net Cost" Mean?
Last Updated Mar 29, 2020 8:39:07 PM ET
The net cost of a good or service is the total cost of the product minus any benefits gained by purchasing that product, according to AccountingTools. It differs from the gross cost, which is just the total cost of a product.
Calculations of net cost or net price are commonly used by universities to help students and parents understand the costs of attendance, according to U.S. News and World Report. In this context, net cost is calculated by subtracting any grants received from the total tuition to determine the actual cost of attendance that the student must pay. The U.S. government also uses net cost calculations to evaluate budgets, according to the Bureau of the Fiscal Services.
More From Reference
Here’s How the COVID-19 Pandemic Changed In-Person Retail Shopping in Lasting Ways
A Brief History of Insults: How Different Cultures Use Spoken and Written Verse to Mock and Mediate
Monkeydactyl and the Little Foot Fossil: Major Evolutionary Breakthroughs of 2021 (So Far)
Fact Check: How Accurate Are Farmers Almanac Weather Forecasts in Comparison to Weather Apps?
What Annual Income Is Considered Poverty Level & How Was the Federal Poverty Level Established?
Tokyo 2020: Here's How the First Modern Olympics Started 125 Years Ago