Product Cost
Finance
Product Cost
Total cost assigned to manufacturing a product, depending on the company's costing rules.
Examples
- 01The product cost of a hydraulic valve is EUR 28, including material, labour and a share of plant overhead.
- 02Sales and controlling review product cost once a year to update price lists and spot products below target margin.
- 03After a design change removes a machining step, the product cost is recalculated and the new figure is used in quotations.