What is Cost Per Minute (CPM)

Cost Per Minute (CPM) – is “The Overhead Cost reported at factory level expressed in US$ Cents per standard minute produced.

Calculation method:

Cost per minute= Direct Labor + Indirect OH + SG&A OH + Finance OH X 100
                                           Total earn standard minute for the same period

Note:

* Expressed in US$
* Overhead cost should exclude Airfreights & Claims
* All the operational activities should include in the overhead (Ex. Subcontracting, Pocket cleaning casual workers etc)
* SG&A OH:  Selling General and Administrative overheads