BOM Cost Build-up

The question: what should one unit of this made product cost? Pick a manufactured product and the report builds its cost from the bottom up: every component at its current cost, in the quantity the BOM demands (§6.9), scrap allowance included — and where a component is itself manufactured, its own build-up is rolled in first, level by level, until the whole tree is priced. The result is the honest comparator for the finished product's standard and moving-average costs (§6.8): if the build-up says a table should cost 410 and the shelf carries it at 460, the difference lives somewhere in the tree — a component whose cost moved, a scrap allowance reality has outgrown — and the report's levels show which floor of the building it lives on.