Most manufacturers seek to understand the precise cost of production. Traditional methods of aggregated analysis serve after-the-fact accounting purposes and are not suitable for managerial decision-making. Product costs fluctuate with variations in product mix, labor composition, and supply chain issues. Due to the absence of an accurate method for appropriately distributing cost to each product, managers are unaware of which products are truly profitable.
Vayoom’s True Product CostTM algorithm distributes the cost to each product accurately creating individual customer and product P&Ls. It utilizes operational data to proportionately distribute the cost and segments products into profitability groups.