Cost Impact Definition

In business, the term ‘cost impact’ refers to the financial effect that a particular action or event has on a company’s bottom line. For example, if a company decides to launch a new product, the cost impact of that decision will be the difference between the revenue generated by the product and the costs associated with developing and marketing it.

It’s important to remember that not all cost impacts are necessarily negative. For instance, if a company reduces its overhead costs, that will have a positive cost impact on its bottom line. Similarly, if a company launches a new product that is very successful, the cost impact of that decision will be positive as well.

There are many factors that can affect a company’s cost impact, including market conditions, competition, government regulations, and more. As such, businesses must carefully consider all potential cost impacts before making any decisions that could potentially have a significant financial effect on their operations.