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1. The present-day Austrian school uses Mises' definition of economics, one which is more realistic than Menger's: People act in order to remove a felt uneasiness. This eliminates Menger's stipulation that such action has to be to the exclusion of others. It doesn't have to be. The trouble with Menger's definition is that it excludes co-operative economic effort, which a sound definition of economic activity should not, as many such efforts are co-operative. [Simple example: a barn-raising.]
2. Costs are prices, and prices are costs. They're just named differently by the people in the stream of trade, as consistent with their own priorities. Since "price" is the most common term, it is conventional to say that costs are prices and stick with "price."