What Is Compliance Cost?

[kuldeep]

I keep coming across the term “compliance cost” when reading about business regulations and taxes. Can someone explain what it actually means? Does it refer to the money a company spends to follow government rules and standards, or does it include time and resources too? An example would really help.

 

[Rick_Grimes]

Compliance cost is basically the money and time a business spends to follow laws and regulations—like filing paperwork, audits, training, or safety measures.

 

[Lucas]

Compliance cost is the total money, time, and resources a business spends to obey laws, regulations, and industry standards like reporting, audits, training, or paperwork.