Should-Cost Model 101: How to Build, Calculate, and Negotiate?
Precoro
AUGUST 1, 2025
The should-cost model analyzes all associated costs—such as raw materials, labor, overhead, logistics, and profit margins—and builds up the ideal cost from scratch. Is it for supplier negotiation, make-or-buy decisions, design-to-cost initiatives, or internal cost optimization? Define objectives and scope.
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