Product Costing and COGS

Product costing is the process of estimating the cost of a product. Now, in order to estimate the cost of any product, the following information is required.

The Bill of Materials is a list of all the materials that are consumed (BOM). How much does it cost to make a finished product? Making costs are incurred as a result of activities performed on materials in order to produce a finished product. Every activity that is carried out has a cost associated with it. 

As a result, if we calculate the cost of each activity and add it up, we will arrive at the cost of the finished product. 

In Odoo routing is the process of keeping a list of all the activities and their respective quantities that are performed during manufacturing. Each activity may have a different cost attached to it. As a result, the cost of producing a finished product is determined by which activity is performed in what quantity.