Cost is different from price. The price of an item of equipment may be £5,000 however the cost of purchasing it will be much higher if all aspects of the process are considered:

  • staff time to decide what is needed
  • finding out the price
  • ordering the item
  • receiving it into the department
  • operating costs during its working life
  • authorisation and payment of the invoice, and 
  • the cost of disposing of the widget at the end of its life.