It's Accounting & Tax Knowledge Blog to help Businesses
April 24, 2026 • Rohitashva
How to determine product costing for manufacturing company
Cost Components: Credit Google
Product costing is a crucial aspect of managing a manufacturing concern, as it allows businesses to determine the total cost of producing a product. Knowing the total cost of production is important because it helps in setting a selling price that ensures profitability. In this blog, we will discuss how to do product costing for a manufacturing concern.
Step 1: Determine the direct material cost: Direct material cost is the cost of raw materials that are used to produce a product. To determine the direct material cost, you need to identify the raw materials used in production and their cost per unit. Once you have identified the raw materials used, multiply the quantity of each material used by their respective cost per unit. Direct material cost = Cost per unit of raw material X Quantity of raw material used
Rohitashva Singhvi is a finance professional, entrepreneur, and digital creator based in Abu Dhabi, United Arab Emirates. With strong expertise in accounting, taxation, and financial compliance, he specializes in UAE VAT, Corporate Tax, financial reporting, and business advisory services. He has hands-on experience working with diverse industries, particularly in automotive services, contracting, and commercial enterprises.
Beyond finance, Rohitashva is the founder and driving force behind multiple digital platforms under the Singhvi Online brand, where he focuses on creating high-value content related to finance, business growth, taxation, and digital opportunities. His work aims to simplify complex financial concepts into clear, practical knowledge that helps businesses and individuals make confident financial decisions.
He combines traditional financial discipline with modern digital innovation, leveraging technology, automation, and strategic thinking to build scalable business systems. His mission is to empower businesses with financial clarity, compliance confidence, and long-term growth strategies.
Rohitashva is committed to continuous learning, professional excellence, and creating impactful solutions that bridge the gap between finance, technology, and entrepreneurship.
