Determining "article cost prices" refers to the process of determining the costs associated with acquiring or manufacturing an article. This includes considering all relevant cost components such as production costs, material costs, labor costs, transportation costs, and other applicable expenses. The goal is to determine the effective price at which an article can be procured or produced.
Typical functions of software in the area of "determining article cost prices" could include:
Cost calculation: Capturing and calculating all relevant cost components associated with the manufacture or procurement of an article.
Material cost analysis: Analyzing material costs for the production of an article, including material prices, consumption, and availability.
Labor cost calculation: Calculating labor costs for the manufacture of an article based on labor hours, wages, and salaries.
Transportation costs: Considering transportation costs for shipping materials or finished products, including shipping costs, duties, and logistics costs.
Overhead allocation: Adding overhead allocations to cover indirect costs such as administrative expenses, rent, and insurance.
Currency conversion: Converting costs into different currencies if materials or products are sourced or sold internationally.
Price updating: Regularly updating article cost prices based on changes in cost components or market factors.
Scenario analysis: Performing scenario analyses to evaluate the impact of cost changes or other variables on article cost prices.