CIRP Encyclopedia of Production Engineering

Living Edition
| Editors: Int. Academy for Production Engineering, Sami Chatti, Tullio Tolio

Cost

  • Sotiris Makris
  • George Michalos
  • George Chryssolouris
Living reference work entry
DOI: https://doi.org/10.1007/978-3-642-35950-7_6552-5

Synonyms

Definition

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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References

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Copyright information

© CIRP 2018

Authors and Affiliations

  • Sotiris Makris
    • 1
  • George Michalos
    • 1
  • George Chryssolouris
    • 1
  1. 1.Laboratory for Manufacturing Systems and Automation (LMS), Department of Mechanical Engineering and AeronauticsUniversity of PatrasPatrasGreece

Section editors and affiliations

  • Günther Schuh
    • 1
  1. 1.Forschungsinstitut für Rationalisierung (FIR) e. VRWTH AachenAachenGermany