transaction cost

USAGE SUMMARY

'transaction cost' is a correct and usable phrase in written English.
It can be used to refer to the costs related to the completion of a transaction, either in business or everyday life. Example sentence: The transaction cost of the new house was relatively low, making it a great investment.

✓ Grammatically correct

Science

News & Media

Formal & Business

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Trust, as transaction cost economics tells us, lowers transaction costs.

The Guardian - Money

The largest transaction cost is a stamp duty, paid to the Irish government.

The New York Times

The biggest transaction cost is a property transfer tax that varies by province.

The New York Times

The largest transaction cost is a 5 percent transfer tax, Mr. Wattiau said.

The New York Times

Emerging from these studies, transaction cost economics focuses on the limitations of contractual relationships.

Encyclopedia Britannica

"It ignores everything that we have learned from theoretical and empirical work" in transaction cost economics.

The New York Times

When migrants send $200 home, for example, the transaction cost is an average of almost $18.

The Guardian

"You're now getting paid to trade; there's a sub-zero transaction cost here".

The New York Times

With the processing fee, the transaction cost $2,500, which they charged to their credit card.

The Guardian

Next comes the transaction cost.

Forbes

A 35% transaction cost disappears.

Forbes

Expert writing Tips

Best practice

When writing about "transaction cost", specify the types of costs you are including (e.g. brokerage fees, taxes, opportunity costs) to provide clarity to your audience.

Common error

Avoid conflating "transaction cost" with production costs. "Transaction cost" refers specifically to the expenses incurred during the exchange process, not the costs of producing the goods or services being exchanged.

Linguistic Context

The phrase "transaction cost" functions primarily as a noun phrase, often serving as the subject or object of a sentence. It identifies the sum of all costs incurred while engaging in an economic exchange, whether it's buying, selling, or negotiating.

Expression frequency: Very common

Frequent in

Science

29%

News & Media

29%

Formal & Business

10%

Less common in

Encyclopedias

2%

Social Media

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "transaction cost" is a common and grammatically sound term, primarily used as a noun phrase in formal, business, and scientific contexts. Ludwig AI confirms its correctness and suggests that it refers to all expenses tied to an economic exchange. You can enhance your writing by specifying the types of costs and by understanding that "transaction cost" differs from "production cost". Related phrases include "cost of transaction" and "expense of transaction". To avoid errors, ensure it's not confused with costs associated with production. In conclusion, using the phrase correctly will contribute to your work's clarity, precision and effectiveness.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cost of transaction

Reverses the order of words for a more descriptive emphasis on the cost aspect.

expense of transaction

Substitutes "cost" with "expense", which implies a more formal or accounting-oriented view.

transaction expenses

Pluralizes "expense" and positions it after "transaction", altering the grammatical structure.

deal cost

Uses the term "deal" as a substitute for "transaction", which is more colloquial and business-oriented.

overhead costs

Refers to indirect costs associated with conducting a business activity, including transactions.

transfer costs

Focuses specifically on costs related to the transfer of goods, services, or assets.

operational costs

Broadens the scope to include all costs related to the operation of a business or system, where transactions are a part.

settlement costs

Relates specifically to the costs involved in settling a transaction, often in financial contexts.

acquisition costs

Focuses on costs related to acquiring assets or businesses, involving specific transaction types.

regulatory costs

Highlights costs imposed by regulatory requirements affecting the transaction process.

FAQs

How can I use "transaction cost" in a sentence?

You can use "transaction cost" to describe any cost associated with making an economic exchange. For example: "The increased regulation led to a higher "transaction cost" for businesses.".

What's the difference between "transaction cost" and "production cost"?

"Transaction cost" refers to the expenses incurred during an economic exchange, such as brokerage fees or taxes, while "production cost" refers to the expenses involved in producing goods or services, like raw materials and labor.

What can I say instead of "transaction cost"?

Depending on the context, you could use alternatives like "cost of transaction", "expense of transaction", or "deal cost".

Why is it important to minimize "transaction cost"?

Minimizing "transaction cost" improves efficiency in economic exchanges, allowing resources to be allocated more effectively and increasing overall profitability.