CIRP Encyclopedia of Production Engineering

2019 Edition
| Editors: Sami Chatti, Luc Laperrière, Gunther Reinhart, Tullio Tolio


  • Sotiris Makris
  • George Michalos
  • George ChryssolourisEmail author
Reference work entry



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...

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Copyright information

© CIRP 2019

Authors and Affiliations

  • Sotiris Makris
    • 1
  • George Michalos
    • 1
  • George Chryssolouris
    • 1
    Email author
  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