Chapter 1-Cost Elements

摘要

Cost is a basic “yard stick” by which activities and assets are measured and compared. The word cost is so commonly used andgenerally related to monetary value, we often lose sight of its true meaning and importance as a cost engineering concept. Thischapter provides a basic overview of cost engineering concepts as they relate to different activities or assets; describes how costelements are structured within the various categories: such as materials, labor, and other resources; states the purpose of costaccounting and its importance; and finally describes how these cost elements and cost structures can be used for the purpose ofcost management.