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Product Costing and COGS

Product costing is the process of estimating the cost of a product. To accurately estimate costs, you need comprehensive information about materials, labor, and overhead expenses throughout your manufacturing process.

1
Bill of Materials (BOM)

List all materials consumed in production with their respective costs

2
Routing Activities

Track all manufacturing activities and their associated costs

3
Cost Calculation

Combine material and activity costs to determine total product cost

Product Costing Illustration