Production cost planning is used to estimate the per unit cost of manufactured goods and services. The plan itself is detailed with a step-by-step of how to meet production goals. This is developed using forecasting data to anticipate problems and alongside a plan B in the event problems actually occur.
Executives use the production cost plan in order to evaluate and determine usefulness of each step in the production process as well as the true value and costs associated with each individual unit.
Executives use the production cost plan in order to evaluate and determine usefulness of each step in the production process as well as the true value and costs associated with each individual unit.