Cost metrics are measurements used to evaluate the financial performance of a project, product, or service. They help organizations understand how much they are spending and where their resources are going. Common cost metrics include cost per unit, total cost of ownership, and return on investment (ROI). These metrics provide insights that can guide decision-making and improve efficiency. By analyzing cost metrics, businesses can identify areas for cost reduction and optimize their budgets. This process often involves comparing actual costs against budgeted costs and assessing variances. Effective use of cost metrics can lead to better financial planning and increased profitability.