Cost is the cash or cash-equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization. We say cash equiva-For example, equipment may be traded for materials used in production. Cost can be thought of as a dollar measure of the resources used to achieve a given benefit. Minimizing the cost required to achieve the same(or greater) customer value for a lower cost than their competitors. In this way, the strategic position of the firm is increased, and a competitive advantage created.