“Product costing” is a method for determining the costs incurred in the manufacture of a product. It includes all expenses that are directly or indirectly associated with production. These take in, for example, material costs, production costs, overheads as well as development and logistics costs. The aims of product costing include: creating transparency about the cost structure, evaluating profitability, and making well-founded decisions for pricing, production optimization and use of resources.
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Explanation: Product cost calculation
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