cost is the cash-equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization. we say cash equivalent because noncash resources can be exchanged for desired goods or services. for example, equipment may be traded for materials used in production. cost can be thought of as a dollar measure of the resources to achieve a given benefit. minimizing the cost required to achieve the benefit means that a firm is becoming more efficient. however, costs must be managed strategically. for example, managers should have the objective of providing 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.