ABSTRACT
Costing is the process of ascertaining the relationship between costs and output in a way which is useful for making decisions. Knowledge of the cost implications of alternative situations are needed in order to analyze a wide variety of problems within a private firm as well as in formulating or assessing public policies. This paper reviews the major approaches to costing, in particular, the application of the statistical technique of regression analysis to determining costs. Some conceptual as well as practical problems in the use of costing methods are examined and the diverse uses of statistical costing in transportation are illustrated.
