In our last article we reviewed the various dimensions of cost and why it makes sense to differentiate between variable and fixed costs, as well as direct and indirect costs.
In that example we analyzed the cost of a job of 300 boards of PVC. However, we did not yet apply our new understanding of costs to actual production decisions. Would we even want to print this job of 300 PVC boards on our screen press? Could there be another option? And what metrics could support our decision making? Let’s spend some time on job allocation and its effect on pricing and profit margins.
The advantage of accurate …