157k views
10 votes
Why is it important for manufacturing companies to know the manufacturing cost of each of the products they make

User Daegalus
by
5.9k points

1 Answer

11 votes

Answer:

Manufacturing cost per unit is important to monitor. These, in many ways, represent the efficiency of the production process. If labor, material, or overhead costs appear too high then action must be taken. You must change and balance all of these costs to maximize shareholder value.

User Bower
by
7.0k points