How production cost is calculated
When a production order closes, AADOPS calculates the total production cost for that run. The calculation has three components:
- Raw material cost — the cost price of each material consumed, multiplied by the quantity used
- Labour cost — if you added a labour cost per run to your BOM, it is included here, scaled to the actual quantity produced
- Overhead cost — any additional costs you recorded against the production order (machine hire, fuel, packaging)
Total production cost divided by units produced equals your cost per unit.
Where to see production costs
Open any closed production order from Producer → Production orders. The cost summary section shows:
- Total raw material cost
- Total labour cost
- Total overhead cost
- Total production cost
- Cost per unit produced
Using cost per unit for pricing
Your cost per unit is your minimum viable selling price. Your actual selling price must cover the production cost per unit plus any post-production costs — packaging, transport, marketplace commission — and your desired profit margin.
If your current selling price is below your production cost per unit, you are selling at a loss. Identifying this early gives you the opportunity to either reduce production costs or adjust your pricing before you compound the loss across a large volume of sales.