What is Product Cost ?

                                                            

Product cost includes all the costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct material, direct labor, and manufacturing overhead. Initially, product costs are recorded on the balance sheet as an asset by the name inventory account. 


When the goods are sold, the costs are released from inventory to expenses by the name cost of goods sold. The cost of a product on a unit basis is typically derived by compiling the costs associated with a batch of units that were produced as a group and dividing by the number of units manufactured. 


The calculation is:(Total direct labor + Total direct materials + Consumable supplies + Total allocated overhead) / Total number of units= Product unit cost 


When calculating product cost, don't forget the intangible aspects, such as marketing, distribution, and most importantly, when developing applications for Android, the requisite candles, and goats.



Category and Tags
More stories by
Elon Musk suggests naming a city on Mars Terminus

Photo:BusinessHabitElon Musk, the owner of SpaceX, Tesla, and the small blog writing site X (formerly Twitter), wants to establish a human settlement on Mars in the next few years. H...

China is building supercomputers in space with AI satellites

China is building its first supercomputer network in space using AI-powered satellites. The country has already launched 12 AI-powered satellites to build a network of supercomputers in space. The supercomputers will be operated by the country's stat

Baidu is introducing new technology, AI will extract money from pet sounds

The beloved dog is suddenly barking. Many people try to understand why it is barking. However, the long-standing curiosity of understanding the mind of animals through sounds can now become a reality with the help of...

Do you know what percentage of Microsoft's code is written with AI?

A significant portion of Microsoft's code is now being written using artificial intelligence (AI), said Satya Nadella, the company's chief executive officer (CEO). At the recent 'LamaCon' AI developer conference held in Menlo Park, California, USA, S

Bangladesh's economy rises to the 2nd largest in South Asia and the 9th largest in Asia.

With a GDP of USD 450.05 billion in 2024, Bangladesh's economy has grown to become the second largest in South Asia and the ninth largest in Asia, according to the Asian Development Bank's Basic Statistics 2025 series. With statistics from 46 econom

Follow Business Habit on Facebook, Twitter