Theme: Analysis of the cost of the product and the factors influencing its change Plans: Introduction

Conclusion
In summary, I can say about “Analysis of product cost and the factors influencing its change “ that it is important to undertake a product cost analysis before starting a new project to evaluate the probable cost and the revenues that an organization might generate. The analysis helps to evaluate the financial feasibility of the project and remember it is the outcome that determines whether the project should be pursued or dropped for the time being.
In some models, the opportunity cost is also an important part of the cost-benefit analysis because these costs are considered alternative benefits and factoring them enables to weigh the advantages from an alternative course of action and not just the current path that the company is thinking of adopting. Once you consider all the options, including potential opportunities that you might have missed, you can get a thorough cost-product analysis that will help to arrive at a better and accurate decision. A proper project business case usually requires a financial cost-benefit analysis. While there are a number of calculation methods that help compare and evaluate different project options, you should be aware of the risks and weaknesses. Financial models and indicators are always an abstraction of the reality and forecasts may or may not be met in reality. Therefore, all the methods introduced above rely on assumptions. In some cases, it may even be only one single figure turning it into a loss-producing or profitable option.


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