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This Product Costs Template will help break down the Product Costs into the costs of Direct Material (DM), Direct Labor, and Manufacturing Overhead (MOH). These are the direct costs of producing the product.
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Example of Product Costs
Company A is a manufacturer of tables. Its product costs can include:
Direct material: The cost of wood used to create the tables.
Direct labor: The cost of wages and benefits for the carpenters to create the tables.
Manufacturing overhead (indirect material): The cost of nails used to hold the tables together.
Manufacturing overhead (indirect labor): The cost of wages and benefits for the security guards to overlook the manufacturing facility
Manufacturing overhead (other): The cost of factory rent and cost of factory utilities.
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A well rounded financial analyst possesses all of the above skills!
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