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Cost is a measure of resources consumed. By assessing costs, pharmacoeconomic studies complement studies of efficacy and safety, helping to determine the relationships of treatment and outcome. Costs are divided into three categories, including direct cost (resources attributable to the intervention), indirect cost (resulting from reduced productivity), and intangible cost (incurred from pain and emotional suffering). Insurance companies, patients, doctors, and the society all have different perspectives with respect to costs. The present authors review different types of cost analyses and their use in studies of psoriasis, atopic dermatitis, and basal cell carcinoma treatment. Cost studies influence clinicians, policy makers, and third-party payers’ decisions regarding the implementation of particular therapies or programs. Collection of cost data needs to be incorporated into clinical trials to facilitate these decisions. [ABSTRACT FROM AUTHOR]