 Time, resources, labor, and capital must all be minimized when placed into any system, so that revenue, product, and profit can be maximized.Hence, the general equation;

formula_1

where "C" is total cost, "a b" and "k" are constants, and "x" is the variable number of units produced.There are a great number of cost analysis formulas, each for particular situations and are warranted by the policies of the company in question, or the preferences of the engineer at hand.