4. The analytical method: what answers can it provide?

This method is applicable from the moment things become "clearer", both in terms of product definition (which is the subject of the Bill of Materials , or BoM ) and definition of the manufacturing process(es) (which is the subject of the Bill of Process , or BoP ). In practice, this corresponds to about the middle of the development phase.

In the following, we'll just remind you of the main principles of this method. At this stage, it is advisable to enlist the help of a production cost specialist, who can be :

• the company's financial manager ;

• one of the methods managers ;

• any expert in production costs.

Just remember that, in cost accounting :

• Selling Price = Cost...