Cost is how much you have to pay to produce your widgets (output). Cost is equal to the input price of each input times the number of units of that input, added up over inputs. For example, pretend that each machine costs $10, each worker costs $5, and each pound of globules costs $1. If you buy 2 machines, hire 3 workers, and buy 5 pounds of globules then cost is (2 times $10) + (3 times $5) + (5 times $1) = $20 + $15 + $5 = $40.

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