Management and control of costs associated with the production of a product or service. The main objective of product cost management is to optimize product costs in order to increase profitability and remain competitive.
A product cost management includes the identification, analysis and control of all cost components, starting with material costs, labor costs and overhead costs. This enables companies to use resources more efficiently and avoid waste. Product cost management plays a central role in product development, as it aims to find cost-efficient solutions during product design. It also takes into account the entire life cycle of a product in order to identify long-term costs and potential savings.