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Product Cost Problem
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Stéphane LeBlanc RJ: Stephane CO: Stephane Post Rating: 0 + / - Total Posts: 2 Karma: 10 Joined: Mar 10, 2013 |
Posted on Apr 18, 2013 Has anyone else noticed that the product costs that are shown when you produce an item are completely wrong?For example, I have a factory making flour: Uses 1.5 Wheat + .5 Electricity My wheat cost is .60$ Ea. and my electricity is at .8 Ea. so just in material there is .98 in costs. The cost is coming out to .56 in the listing. Has anyone else experienced this? Is it true of other products as well? Is it a glitch or is it that I am using less material than outline? Thanks! |
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David Archer RJ: BallC CO: BallC Post Rating: 0 + / - Total Posts: 142 Karma: 135 Joined: Apr 11, 2012 |
Posted on Apr 18, 2013 There is an EoS factor that reduces the amount of raw mats and money used when producing larger batches.1M flour doesn't need 1.5M units of wheat and 0.5M units of electricity. |
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Paco Co RJ: Mr. Costa CO: Mr. Costa Post Rating: 0 + / - Total Posts: 89 Karma: 30 Joined: Mar 8, 2012 |
Posted on Apr 23, 2013 I agree that the product cost should at least try to reflect company costs, like maintenance, salaries, taxes, etcBut having said this its probably a complex formula to achieve. |
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M Burch RJ: Farmerbob CO: Farmerbob Post Rating: 0 + / - Total Posts: 151 Karma: 14 Joined: Sep 2, 2012 |
Posted on May 1, 2013 Economy of Scale. The longer the production job and the larger the facility doing the producing, the lower the cost per unit will be.
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