Review the List of Current Cost Drivers
Take one more look at your formula and see if you can stretch it further. Ask yourself if it makes sense to you and the others in the team. Sometimes you may need to factor in that your formula is based on a perfect scenario. For example, if you were writing a formula for raw material such as the plastic used for making a case for your computer, the formula would read something like:
While reviewing this you may realize that you haven’t factored the yield loss. Well, you can modify your formula to either take the whole equation and divide it by yield or insert a variable like:
Here the variable,
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