Theoretical Cost Analysis Transaction Cost and the Economics of Trust Value Engineering Cost technologies are means by which we can modify the cost of a product or service. Cost is a measure of human endeavor in monetary units. It is an expenditure of resources. These resources include labor and capital.
Labor is a measure of human work in units of the total person equivalents applied over time.
Capital is a measure of non-human resources expended over time. Capital resources include mineral and money rights. So called capital equipment is not a capital resource since a considerable amount of labor is expended to create it. Capital equipment must be expressed recursively as labor and capital. In other words, the sum of all labor expended to genopersist an object must be accounted for as labor.