In the introduction of cost calculation, we’ve seen that the total cost of a product is a combination of raw material costs, process costs and overheads and profits. This post is about the cost calculation of process costs which is defined by cycle time, machine rate, number of products per cycle, set up time and […]
Cost calculation within companies and procurement is always a difficult item, especially when talking to finance colleagues or management. Finance colleagues see costs difference than “we” from procurement do. On the discussions with management: make sure you don’t get trapped in the pitfall of potential mix-up between cost calculation and price of the products.