Question

What is net cost? (Please define in your terms and not just merely copy from text/dictionary/Google.

Answer 1

Net cost is nothing but the cost in getting a machine and then subtracting it with the amount of money that is being generated using that machine, i.e. a machine that is bought would include shipment cost, working cost, tax, machinery equipment set up cost etc., this is the final cost. Now we subtract the profit of good achieved using this machine then it would be the final i.e. net cost.

Example: Premium that is being given to the insurance company as an yearly money and then subtracting the cash generated by having that insurance policy would be the net cost.