Cost is the amount of cash expended or other property transferred, the capital stock issued, the services performed or a liability incurred, in consideration of the goods or services received or to be received (Belkaoui 1985).
However, there is no exact definition of the term “cost” since its interpretation would depend upon the nature of the business or industry and the context used. The use of the term “cost” without qualification may be misleading. Different costs arise for different purposes.
Theory and Application
Cost, together with flexibility, time, and quality are the main manufacturing attributes that should be considered during the manufacturing system design and operation (Chryssolouris 2006). In order for manufacturers to evaluate the effectiveness of their facilities and formulate their strategies and decision-making procedures, there is a need for methods that are able to quantify the...
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