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Product line cost estimation: a standard cost approach.

J C Cooper, J D Suver

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |March 10, 1988
    PubMed
    Summary
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    Accurate product costing is essential for effective decision-making. Implementing a standard costing model improves the estimation of intermediate and end product costs, leading to better overall product line cost management.

    Area of Science:

    • Business Management
    • Cost Accounting

    Background:

    • Product line managers frequently face challenges due to inaccurate cost data.
    • Reliable cost information is critical for strategic business decisions.

    Purpose of the Study:

    • To introduce a method for more accurate cost determination in product lines.
    • To enhance the decision-making capabilities of product line managers.

    Main Methods:

    • Application of a standard costing model.
    • Estimation of costs for intermediate and end products.

    Main Results:

    • Improved accuracy in estimating product costs.
    • Enhanced ability to determine overall product line costs.

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    Conclusions:

    • A standard costing model provides a more reliable approach to product cost estimation.
    • Accurate cost data empowers better product line management and strategic planning.