Description

Parametric Costing is a revolutionary concept of computerized method of costing. It is called parametric because the product cost automatically, accurately and instantaneously changes when any of the parameters going into it change. The change in the product cost is exactly to the extent of the contents of any parameter that has changed in that product. Since the system is based on actual process sheets, it can never become inaccurate once logic is installed on a computer for process sheet of each product that is costed.