What did this batch really cost?
Knowing your true cost to make a product is the difference between pricing with confidence and guessing. IEMSuite builds a per-batch and per-unit cost from the real inputs of each production run.
What goes into the cost
- Material - the actual cost of raw materials and packaging consumed, taken from lot costs (so it reflects what you really paid), including recorded wastage.
- Labor - the labor attributed to the batch.
- Overhead - the overhead allocated to the run.
These roll up into a total batch cost, and dividing by the output gives a per-unit cost.
Where to see it
- The batch itself shows its cost breakdown.
- Inventory → Cost Analysis aggregates production costs across batches so you can compare over time. See Cost analysis: purchasing vs production.
Why lot costs matter
Because material cost comes from the specific lots consumed, your product cost tracks real purchase prices instead of a stale average - so margins stay honest as supplier prices move.
Tips
- Keep receiving accurate (including freight) so landed material cost is right.
- Record wastage honestly - it's part of the true cost. See Tracking wastage & yield.
FAQ
Is cost per unit or per batch?
Both - IEMSuite computes the batch total and the per-unit cost from the batch output.
Does it use real or estimated material prices?
Real lot costs from the stock you actually consumed, not a fixed estimate.