Cost Estimation is a statement that gives the value of the cost incurred in the manufacturing of finished goods. To view the cost estimation of a particular finished product, select the relevant Stock Group which will display the stock consumption details and cost thereof for each of the stock items falling under that Group.
Cost estimation helps in fixing the selling price of the final product after charging appropriate overheads and allowing certain margin for profits. It also helps in Inventory Reports drawing conclusions regarding the cost of production and in determining the necessity to introduce cost reduction techniques in order to improve the manufacturing process.
To view Cost Estimation:
Go to Gateway of Tally > Display > Statements of Inventory > Cost Estimation
The cost estimation screen is displayed as shown: