ABSTRACT
This chapter outlines some costing concepts and issues that need to be considered when undertaking an economic analysis in the field of health and social care. An accurate assessment of costs is an important part of any economic evaluation. An accurate assessment of costs is an important part of any economic evaluation. How costs are derived and combined will depend on the assumptions that have been made in their derivation. It is important to be clear what assumptions have been made and why in order to maintain consistency across comparative studies and prevent inappropriate conclusions being drawn. Costs are a fundamental building block of any economic evaluation. Until quite recently, there was a paucity of accurate cost information across the NHS. The growth of interest in cost measurement has been driven by the need for cost information for planning, management and performance measurement, in addition to formal economic evaluation.
