Evaluation of production costs
A bad estimate of the manufacturing cost can lead to bad decisions. When promoting the sale of the most profitable product, profits should logically increase. If this is not the case, we must ask ourselves if the manufacturing cost that we have calculated is correct.
But in the context of the global market, it is now more open to competition, which reduces companies' room for maneuver as well as the possibility of adjusting their selling prices. Cost management can be taken lightly.