Costing
Production estimates, setup cost allocation, machine rates and minimum lot charges.
Related guides
- Supplier quotations
How quotation scope, quantity, commercial exclusions and delivery assumptions define the meaning of a supplier price.
- Build a manufacturing cost estimate
Connect material, setup, runtime, outside processing and inspection into an explicit per-part estimate.
- Activity-based costing
Trace resource costs through activities to products, services, and customers, with explicit drivers, capacity assumptions, and decision limits.
- Actual costing
Actual versus normal and standard costing, cost-pool boundaries, period-end reconciliation and an illustrative inventory-cost example.
- Break-even quantity
Sales volume required to cover a defined cost base, with contribution formulas, reconciled whole-unit examples, sales-mix assumptions, and capacity checks.
- Consumable cost allocation
Separate purchases, physical use, direct job charges, shared consumable pools, and losses before assigning costs to work.
- Contribution margin
Unit, total and percentage contribution; reconciliation to gross margin; and bounded examples for sales mix and constrained capacity.
- Energy cost allocation
Assigning electricity costs to jobs, equipment, or departments using measured consumption, tariff-specific demand, and explicit shared-cost policies.
- Job-order costing
Accumulate costs by identifiable job, apply overhead explicitly, and reconcile work in process, finished goods, and cost of goods sold.
- Machine-hour rates
Defining machine cost pools and capacity denominators, separating setup from runtime and labour, and reconciling cost recovery with selling rates.
- Minimum lot charges
Interpreting supplier minimum charges by lot, process, line, and invoice, with reconciled examples that distinguish billing from internal unit-cost allocation.
- Non-recurring engineering charges
Define NRE scope and deliverables, separate ownership from payment, and reconcile upfront charges with recovery through unit prices.
- Process costing
Departmental cost accumulation, equivalent units, weighted-average versus FIFO treatment, WIP valuation and process-loss boundaries.
- Scrap recovery credits
Estimating and reconciling the net value recovered from production scrap, with ownership, yield, settlement, and accounting boundaries.
- Setup amortization
Spread a defined setup cost over an explicit batch quantity while separating resource burden, supplier fees, yield, and repeated setups.
- Standard costing
Standard inputs allowed for actual output, reconciled material and labour variances, overhead absorption and inventory-reporting limits.
- Tool-life cost allocation
Assigning cutting-tool consumption and change costs to good output using usable edges, measured time in cut, and bounded reconditioning assumptions.