The Least-cost method considers the respective costs of the variables so as to find a basic feasible solution that approximates the optimum solution more.

Unlike the Northwest Method, the Leastcost algorithm begins with selecting the route that has the smallest unit cost of transportation.

If there is more than one variable that has the smallest cost, any variable among these can be selected arbitrarily.

The value allocated to this variable is the value of the smaller one of the supply and demand.

The value allocated to the selected route is the greater one of the values of the supply and demand.