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Optimizing Manufacturing Overhead Costs


Using engineering estimates: Informed judgments are made as to the amount of maintenance, heat, light and other overhead costs each product line should incur. Activity-based costing: A formal accounting-based process is used where operations determine the allocation of overheads.

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Product Costing in 7 Easy Steps


Product costing is a necessity not only for accountants but also for managers. Understanding the costs related to manufacturing your products gives you the chance to determine optimal selling prices and take steps toward cost reduction. Here is a simple guide to performing product costing. What is Product Costing?