Prime costs and conversion costs are two methods that businesses use to measure the efficiency of their production operations. Prime costs also mark an item’s rock-bottom selling price; if you sell a product below its prime cost, you’re losing money on each unit. To generate a positive gross profit margin, products should sell for more … Continue reading What is the difference between prime costs and conversion costs?

To effectively manage these expenses, businesses like Onion Oasis can adopt new technologies and methodologies that streamline marketing and distribution processes. A BOM also helps you plan how to use your resources, including your materials and team members, to streamline the production process. From improving pricing strategies to optimizing production levels, marginal cost gives you … Continue reading Cost of Production: Formula & 9 Types of Product Costs