Define the Cost Object
The batch is the natural cost object: a defined group of plants moving through the production stages together, with quantities recorded at each transfer point.
Accumulate Costs by Stage
Propagation, vegetative, flowering, harvest, drying, curing, trimming and packaging each consume labor and materials at different rates. Capture them separately so bottlenecks are visible.
- Direct labor hours tagged to batch and stage
- Nutrients, media and consumables issued to batch
- Allocated utilities based on room days or canopy area
- Facility depreciation and supervision allocation
Measure Yield Honestly
Record wet weight, dry weight and saleable finished weight, along with loss at each step and the reason. Yield analysis without loss reasons produces averages, not insight.
Use the Number
Compare fully absorbed cost per gram across rooms and cultivars, evaluate whether a cultivar earns its cycle time, and use the data in capital planning.
Frequently Asked Questions
- Should cost per gram be based on wet or dry weight?
- On saleable finished weight. Wet weight overstates output and makes comparisons meaningless.
- How should overhead be allocated between rooms?
- Using a rational driver such as canopy square footage or room days, documented in writing and applied consistently.
- What about pre-production or idle facility cost?
- Idle capacity cost generally should not be absorbed into inventory. Define the policy in advance and apply it consistently.