Software solutions with function or module Product costing:
Show all 12 programs with Product costing
The term "product costing" refers to the business process of systematically determining the manufacturing costs and sales price of a product. The objective is to assess the profitability of a product, support informed pricing decisions, and ensure economic viability. Product costing considers various cost categories such as material, production, overhead, and administrative expenses. It can be applied to both existing products and new product developments.
Unit Cost Calculation: Determining per-unit costs by factoring in all relevant direct and indirect costs.
Material Cost Calculation: Automatic allocation and valuation of raw materials, semi-finished, and finished goods used in production.
Labor and Production Costing: Recording and assessing labor hours, machine usage, and production steps.
Overhead Cost Allocation: Applying overhead rates to distribute indirect costs to individual products.
Contribution Margin Analysis: Calculating the contribution towards covering fixed costs and evaluating the profitability of a product.
Scenario and Variant Costing: Simulating alternative production processes, materials, or batch sizes to optimize cost structures.
Cost Center-Based Costing: Assigning costs to specific production areas or departments for greater transparency.
Integration with ERP and MRP Systems: Utilizing up-to-date data from inventory, purchasing, production, and sales for accurate cost calculations.
A mechanical engineering company calculates the manufacturing costs of a new machine generation, including material, labor, and energy expenses.
A furniture manufacturer assesses the impact of rising raw material prices on the sales price of a product line.
An electronics company compares different production variants in terms of costs and margins.
A company simulates various batch sizes to determine the most cost-efficient volume for series production.
A controller uses costing software to identify unprofitable products with negative contribution margins and recommends phasing them out.
