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.