Costing and Canvassing of Materials

Front

The process of gathering information and comparing prices, quality, and availability of materials or goods from various suppliers or vendors.

Back

Canvassing of Materials

Front

Steps in Canvassing of Materials

Back

Identify

Solicit

Compare

Negotiate

Select

Document

Front

Importance of Canvassing

Back

Cost Savings, Quality Assurance

Informed, Decision-

Making, Transparency

Front

determining and calculating the total costs associated with

producing a product, offering a service, or completing a project.
assigning those costs to specific products, services, or

projects to determine profitability and set appropriate pricing

Back

Costing

Front

Costs that are directly attributable to the production of a specific

product or service.
Ex. Raw materials, labor, manufacturing

supplies.

Back

Direct Costs

Front

Costs not directly tied to a specific product are necessary for the

overall operation.

Ex: Overhead costs like utilities, rent,

equipment maintenance, and administrative salaries.

Back

Indirect Costs

Front

Costs that remain constant, regardless of the level of production or services

offered.

Examples: Rent, insurance, salaries (not linked to production),

depreciation.

Back

Fixed Costs

Front

Costs that fluctuate with the production or service activity level.

Examples: Raw materials, packaging, energy consumption in

production.

Back

Variable Costs

Front

Costs that have both fixed and variable components.

Example: A utility bill with a fixed base rate plus variable charges

based on usage.

Back

Semi-Variable Costs

Front

Importance of Costing

Back

Pricing

Profitability Analysis,

Budgeting and Planning