The "Cost of Service" refers to the total expenses incurred by a company to provide a specific service to its customers. This includes direct costs like labor, materials, and overhead, as well as indirect costs such as administrative expenses. Understanding these costs helps businesses set appropriate pricing and ensure profitability. In industries like utilities, Cost of Service analysis is crucial for determining rates charged to consumers. Regulatory bodies often review these costs to ensure that pricing is fair and reflects the actual expenses involved in delivering services, thereby protecting both the company and its customers.