To require a specified payment, expenditure, effort, or loss: It costs more to live in the city. Costs refer to the amount of money or resources expended to purchase, produce, develop, or maintain a product, service, or asset. These may include raw materials, labor, rent, utilities, transportation, and other operational expenses. In its single form, cost is the sum of an entire group, while costs is the individual prices that make up the groups. For example, “The cost of roofing includes material costs and insurance costs.” The meaning of COST is the amount or equivalent paid or charged for something : price. How to use cost in a sentence. COSTS definition: 1. the amount of money needed for a business or to do a particular job: 2. the amount of money…. Learn more. Costs are often underestimated, resulting in cost overruns during execution. Cost-plus pricing is where the price equals cost plus a percentage of overhead or profit margin. law Costs is the money given to a person who wins a legal case to pay for the cost of taking the matter to a law court.