Definition
The process of calculating and evaluating all the expenses involved in producing a product. This includes direct costs like materials and labour, as well as indirect costs such as overhead and tooling.
Why it matters (in Poovi’s context)
Crucial for determining profitability and pricing strategies in any product-based business, as demonstrated by the cost breakdowns provided in the source.
Key properties or components
- Cost per unit
- Bulk pricing
- Mould fees
- Material costs
Contradictions or debates
None.