What’s a should cost analysis

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A should cost analysis is a method used to determine the expected cost of a product or service based on its individual components and manufacturing processes.

A should cost analysis involves breaking down a product or service into its various components and analyzing the cost of each component.
It also takes into account the manufacturing processes involved in producing the product or service.
By analyzing the cost of individual components and manufacturing processes, a should cost analysis helps in determining the expected cost of the product or service.
This analysis is often used in supply chain management to negotiate better prices with suppliers and identify cost-saving opportunities.
For example, in the automotive industry, a should cost analysis may involve analyzing the cost of materials, labor, and manufacturing processes to determine the expected cost of a specific car component.

What’s a should cost analysis

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