Costing (COGS)

Real-time cost of goods sold calculation from production step definitions - material, labor, and overhead costs.

Augno calculates the cost of goods sold (COGS) for parts and products in real time from production step definitions, giving you visibility into material, labor, and overhead costs as you manufacture.

Cost components

Each production step contributes three types of cost:

Material cost

The sum of all consumption costs at a step:

Material Cost = Σ (consumption.quantity + consumption.wasteQuantity) x item.unitCost

This includes waste: if a step consumes 10 units with 1 unit of waste, the cost is based on 11 units.

Labor cost

Labor Cost = Labor Rate x Labor Time

Where Labor Rate is the hourly cost and Labor Time is the hours required per step execution.

Overhead cost

Overhead Cost = Overhead Rate

A flat cost per step execution covering facilities, utilities, and other indirect costs.

Adjustments

Two decimal adjustments modify step costs:

  • Leveling factor: a multiplier applied to account for yield or efficiency calibration across the step
  • Allowances: additional adjustments for waste, downtime, or other operational factors

Cost aggregation

Costs aggregate across the entire production flow to produce aggregated production costs. These break down by:

  • Department: costs grouped by which department performed the work
  • Category: costs split into:
    • Total costs: everything combined
    • Productive costs (firsts): costs attributable to good output
    • Waste costs: costs attributable to scrap and loss
    • Seconds costs: costs attributable to secondary-quality output

Real-time recalculation

COGS recalculates automatically when you change:

  • Step definitions (labor rate, labor time, overhead rate)
  • Consumption quantities or waste quantities
  • Material unit costs
  • Leveling factors or allowances

This means you always see current cost data: there's no manual recalculation step.

Related

Next: Production runs