Options for cost analysis

Many kinds of cost analysis are possible. Indeed, given the variety of purposes, methods, and types of cost, the number of permutations is virtually unlimited. In broad terms, one can disaggregate the universe of cost studies by distinguishing whether their primary purpose is to determine costs or to explain costs or to evaluate costs. Of course, costs cannot be explained or evaluated until they have been determined, and the difference between explanation and evaluation is not large. Still, the distinctions are useful in thinking about and planning for possible cost studies.