What is Should-cost model?
An independent, bottom-up estimate of what a product should cost to produce (material, labor, overhead, margin), used to test vendor bids and inform negotiation.
Where you will use it: this term comes up in the Applied AI for Finance and Accounting course, and the full course glossary collects every term in one place.
Related terms
From the free Applied AI for Finance and Accounting course by Devon Coombs, CPA, MBA.