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PRODUCT COSTING
Need Product Costing Assistance?
- Know how much it costs to produce each
product?
- Know your profit margin for each product?
If NO, your company may benefit from Product
Costing Assistance….
A Product Costing System is…
a management tool that identifies the actual
cost of producing each product. Identifying profit or loss on each
product, companies can identify and promote profitable products
while dropping, redesigning, or repricing unprofitable products.
What are the benefits of Product
Costing?
- Selling profitable products
- Better managing of resources
- Maximizing profits
- Understanding each product's contribution
to the bottom line
How can MMEC help implement a Product
Costing System?
MMEC works with you and your team to investigate
the actual cost for each product and develop a customized spreadsheet
for ongoing calculation of actual product costs. Together with you
and your team, we identify the raw material and labor costs for
each product and, utilizing historical overhead expenses, apply
these costs to each product to determine the actual product cost.
Then we develop a customized spreadsheet with the ability to adjust
material costs, labor costs, overhead, sales levels, and add new
products for use as a management tool. We don't just tell you what
you should do, we help you do it.
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