Abstract. The dimension algebra of graded groups is introduced. With the help of known geometric results of extension theory, this algebra induces all known results of the cohomological dimension theory. Elements of the algebra are equivalence classes dim(A) of graded groups A. There are two geometric interpretations of these equivalence classes:) if and only if the infinite symmetric products SP (K) and SP (L) are of the same extension type (i.e.,2) For pointed compact spaces X and Y , dim(H − * (X)) = dim(H − * (Y )) if and only if X and Y are of the same dimension type (i.e., dimDranishnikov's version of the Hurewicz Theorem in extension theory becomes dim(π * (K)) = dim(H * (K)) for all simply connected K.The concept of cohomological dimension dim A (X) of a pointed compact space X with respect to a graded group A is introduced. It turns out dim A (X) ≤ 0 iff dim A(n) (X) ≤ n for all n ∈ Z. If A and B are two positive graded groups, then dim(A) = dim(B) if and only if dim A (X) = dim B (X) for all compact X.