The practical use of classification systems may be limited because the current classification systems do not allow decision makers to incorporate cost constraint. For example, in several financial applications (loan approval, credit scoring, etc.) an applicant is asked to submit a processing fee with the application (Mookerjee and Mannino 1997). The processing fee may be used to validate the information entered in the application. From an economic standpoint, it is important that the cost of validating the information not exceed the processing fee. Traditional classification systems do not allow the decision maker to incorporate information acquisition cost constraint. We term the problem of designing a classification system, where information acquisition costs are considered,astheproblemofclassificationwithinformationacquisitioncostconstraint(CIACC). TheCIACCproblemisaNP hard problem and is very difficult to solve to optimality.