Kosten, in German, translates to "costs" in English. It refers to the expenses incurred in the production of goods or services. These costs can include materials, labor, and overhead, and are essential for businesses to understand in order to set prices and manage budgets effectively. In economics, understanding Kosten is crucial for decision-making. Businesses analyze their costs to determine profitability and efficiency. Different types of costs, such as fixed and variable costs, help organizations strategize and optimize their operations, ensuring they remain competitive in the market.