We introduce an instance-weighting method to induce cost-sensitive trees in this paper. It is a generalization of the standard tree induction process where only the initial instance weights determine the type of tree (i.e., minimum error trees or minimum cost trees) to be induced. We demonstrate that it can be easily adopted to an existing tree learning algorithm. Previous research gave insufficient evidence to support the fact that the greedy divide-and-conquer algorithm can effectively induce a truly cost-sensitive tree directly from the training data. We provide this empirical evidence in this paper. The algorithm employing the instance-weighting method is found to be comparable to or better than both C4.5 and C5 in terms of total misclassification costs, tree size and the number of high cost errors. The instance-weighting method is also simpler and more effective in implementation than a method based on altered priors.