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Is product costing an exact science? How easy is it to predict overhead costs ahead of time? What happens if our overhead cost projections are

  • Is product costing an exact science?
  • How easy is it to predict overhead costs ahead of time? What happens if our overhead cost projections are wrong?
  • Qualitative factors that may need to be considered - how busy or slow is the shop, how easy or hard is it to make the product, is this a new customer, are other large or smaller orders likely to come, is this a loyal repeat customer?
  • How much does the business expect to sell in the next year in units?
  • What should be our unit selling price to Mrs. Carter?

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