Hunter Hastings and Peter Klein (Mises.org/Klein) emphasize profitable value creation as the role of the entrepreneur. Managing costs can contribute to profitability — but there are some costs that are not easy to calculate and not even that easy to identify in some cases. They are not captured by traditional cost accounting. Economists call them "transaction costs". They are the costs of acquiring, assembling, monitoring and managing and, in some cases, discarding or re-purposing the resources and assets your firm utilizes to produce output. They are not production costs per se; they are not value creation costs. They’re administrative and managerial costs. Peter Klein explains. Show Notes: https://mises.org/library/are-you-transaction-cost-savvy-peter-klein-explains-why-it%E2%80%99s-important Transaction Cost Checklist (PDF): https://mises-media.s3.amazonaws.com/3%20Phases%20of%20Entrepreneurial%20Transaction%20Costs.pdf Economics For Entrepreneurs is also available on... iTunes: https://itunes.apple.com/us/podcast/economics-for-entrepreneurs/id1453233518?mt=2 Google Play: https://play.google.com/music/m/Iz2umketq6fu5npyjpb57b7z2cq?t=Economics_For_Entrepreneurs Stitcher: https://www.stitcher.com/podcast/mises-institute/economics-for-entrepreneurs?refid=stpr Soundcloud: https://soundcloud.com/misesmedia/sets/economics-for-entrepreneurs Spotify: https://open.spotify.com/show/7A1kY8ksk1qL2oNf0i97Zp and via RSS: https://mises.org/itunes/735