Estimated completion time: 1 hour 20 minutes 

In this unit, we look closer at cost of production (CoP), a key metric that can help you manage operational inefficiencies, use cost reduction strategies and mitigate risk. You’ll learn about the expenses in producing your goods, their differences, and how to calculate CoP and cost per unit for further analysis.

Lessons: 

• Understanding your cost of production
• Strategies for efficiency and protecting profitability
• Planning for success

Learning objectives:  

• Recognize the relationship between revenue, expenses and profits.
• Calculate the cost of production for a sample operation.
• Assess new opportunities, such as expansion or diversification, based on the cost of production.
• Categorize fixed and variable costs for your operation.