That is correct - the original name was Costé. The circonflex over the letter "o" (ô) actually means that there was an "s" in the old French spelling that was dropped.
In case anyone doesn't know, the name originated around the Perche region of France (the same region where Percheron horses were first bred). It is derived from the word meaning "neighboring, adjacent to". The implication is that the name was applied to tenant farmers who lived alongside the manor or lord's castle where they farmed, thereby gaining some degree of protection from the nobels in return for their loyalty, work, etc.
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