# Methods

Setup amortization, minimum lot charges, machine-hour rates, tooling cost and scrap credits.

[Manufacturing Wiki](https://planar.so/wiki/index.md)

- [Activity-based costing](https://planar.so/wiki/costing/methods/activity-based-costing.md): Trace resource costs through activities to products, services, and customers, with explicit drivers, capacity assumptions, and decision limits.
- [Actual costing](https://planar.so/wiki/costing/methods/actual-costing.md): Actual versus normal and standard costing, cost-pool boundaries, period-end reconciliation and an illustrative inventory-cost example.
- [Break-even quantity](https://planar.so/wiki/costing/methods/break-even-quantity.md): 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](https://planar.so/wiki/costing/methods/consumable-cost-allocation.md): Separate purchases, physical use, direct job charges, shared consumable pools, and losses before assigning costs to work.
- [Contribution margin](https://planar.so/wiki/costing/methods/contribution-margin.md): Unit, total and percentage contribution; reconciliation to gross margin; and bounded examples for sales mix and constrained capacity.
- [Energy cost allocation](https://planar.so/wiki/costing/methods/energy-cost-allocation.md): Assigning electricity costs to jobs, equipment, or departments using measured consumption, tariff-specific demand, and explicit shared-cost policies.
- [Job-order costing](https://planar.so/wiki/costing/methods/job-order-costing.md): Accumulate costs by identifiable job, apply overhead explicitly, and reconcile work in process, finished goods, and cost of goods sold.
- [Machine-hour rates](https://planar.so/wiki/costing/methods/machine-hour-rates.md): Defining machine cost pools and capacity denominators, separating setup from runtime and labour, and reconciling cost recovery with selling rates.
- [Minimum lot charges](https://planar.so/wiki/costing/methods/minimum-lot-charges.md): 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](https://planar.so/wiki/costing/methods/non-recurring-engineering-charges.md): Define NRE scope and deliverables, separate ownership from payment, and reconcile upfront charges with recovery through unit prices.
- [Process costing](https://planar.so/wiki/costing/methods/process-costing.md): Departmental cost accumulation, equivalent units, weighted-average versus FIFO treatment, WIP valuation and process-loss boundaries.
- [Scrap recovery credits](https://planar.so/wiki/costing/methods/scrap-recovery-credits.md): Estimating and reconciling the net value recovered from production scrap, with ownership, yield, settlement, and accounting boundaries.
- [Setup amortization](https://planar.so/wiki/costing/methods/setup-amortization.md): Spread a defined setup cost over an explicit batch quantity while separating resource burden, supplier fees, yield, and repeated setups.
- [Standard costing](https://planar.so/wiki/costing/methods/standard-costing.md): Standard inputs allowed for actual output, reconciled material and labour variances, overhead absorption and inventory-reporting limits.
- [Tool-life cost allocation](https://planar.so/wiki/costing/methods/tool-life-cost-allocation.md): Assigning cutting-tool consumption and change costs to good output using usable edges, measured time in cut, and bounded reconditioning assumptions.