Definition
A Transaction (or Transaction Cost) is the overhead cost (or fixed cost) of executing each and every item in a batch is known as a Transaction cost. It’s one of the two overall costs that determines the economic batch size in a U-curve optimization.
The Agile method emphasizes the reduction of transaction costs over the development period of new and innovative IT products. They are generally found to be lower in the Agile Development Process, than in the traditional ones.
Further Reading
- “Transaction Cost Management : Strategies and Practices for a Global Open Economy” (book) by Chihiro Suematsu.