Product Costing

Product costing is the process of determining the total expenses associated with producing a product. This includes direct costs, like raw materials and labor, as well as indirect costs, like utilities and rent, that support the manufacturing process. Understanding these costs helps businesses set prices, manage budgets, and assess profitability. Accurate product costing ensures companies can make informed decisions about production efficiency and pricing strategies, ultimately impacting their financial performance and competitiveness in the market.