In this paper we estimated household cost functions and equivalence scales. Two versions of scales are derived, a general one and a utilityspecific one. The new feature of this paper is the methodology. With respect to method we base ourselves on direct cost assessments by respondents for various welfare levels, derived from attitude questions. We see that respondents are not able to assess the true cost function directly, but that their response behavior reveals a virtual cost function. From their response the true cost function may be derived. The alternative approach used in this paper does not make use of typical consumer surveys. The specific question needed in this paper can be plugged into any type of survey, oral or written. Linked with a few background data on income and family size it serves its purpose. A straightforward generalization of 'this method lies at hand. The same method can be used to develop and estimate equivalence scales for other factors.