FMC

FMC, or Fair Manufacturing Cost, refers to the fair value assigned to the manufacturing process of a product. It encompasses all direct and indirect costs involved in producing an item, such as raw materials, labor, factory expenses, and overheads, ensuring these costs reflect the true cost of manufacturing. FMC helps businesses assess profitability, set appropriate sales prices, and manage costs effectively. It promotes transparency and fair valuation in financial reporting, ensuring that the manufacturing expenses are accurately represented without exaggeration or underestimation.