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Cost Modeling


Glossary

What is Cost Modeling?

Cost modeling is a strategic process that revolves around simulating future cost and revenue scenarios, particularly in contexts like innovative product development. This entails comprehensive estimates encompassing material inputs, machine hours, personnel costs, and various other necessary expenses. Through cost modeling, historical data is generated, facilitating the exploration of potential pricing scenarios. This strategic approach aids in optimizing resource allocation and enhances the accuracy of financial planning.

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