Why do manufacturing companies use product costing systems to track costs throughout the production process?

Question

lol

Answer 1

So they can get an exact cost of the product they manufacture, and to give them direction on where they should focus their cost cutting efforts (i.e.: use a pareto chart, and try to cut costs on the areas where they spend the most money...)

Answer 2

They have to know what the product costs them to make so they can tell what they have to sell it for and still make a reasonable profit.

Answer 3

The concept behind is " Buy Low Sell High " Know your cost, then you know how much to mark it up!