Cost modelling is one of the most important skills used during buying and selling activities and enables you to understand what determines a certain cost.
Cost modelling can be used to achieve different purposes, depending on what it is useful to focus on.
For example, a very detailed cost model can help us to determine which is the best among different suppliers producing the same product.
An internal production model can help us to choose the right selling price for our products, and consequentially to increase our competitiveness and decreasing the risk of losing bids and tenders.