Costing a batch when the raw material is not uniform
Hides, skins and natural materials arrive in varying size and grade, so a per-unit standard cost quietly misprices every order. This walks through area-based costing and where the margin leak usually hides.
- Why per-piece costing understates high-grade selections
- Allocating drum, chemical and labour cost across a mixed batch
- Reconciling selection loss without a month-end guess