Product Costing
What is Product Costing?
Product costing is the process of determining the total cost associated with manufacturing a product or delivering a service. It involves identifying and allocating all direct and indirect costs to a specific product or service. This information is vital for setting prices, evaluating profitability, making informed production decisions, and controlling costs. Common methods used in product costing include standard costing, activity-based costing (ABC), and marginal costing.
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