[原创]Two Definitions of Product Cost under CSS

n      Customer Definition：The product cost should be the essential expenditure in manufacturing process, excluding the poor management costs.

n      Entity Definition：The product cost refers to the total resource consumed in manufacturing process, including the poor management costs.

n      Three poor management costs in manufacturing process are:

       1) Quality cost

       2) Efficiency cost

       3) Capital cost of excess inventory

n      Toyota defines wastes as anything other than the minimum amount of materials, equipment, parts, space, or time which are essential to add value to the product。