4 2: Describe and Identify the Three Major Components of Product Costs under Job Order Costing Business LibreTexts
Effective management of product costs improves profitability and operational efficiency. Product costs are made up of three main components that contribute to the total cost of production. Creating a budget for factory overhead costs aids in estimating variable and fixed overheads, providing insights into cash disbursement needs. Maintaining a sales price equal to or greater …