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What is Product Cost?

Product cost refers to the total amount of money a business spends on resources and the efforts needed to make a product during production. It includes direct expenses incurred in making the product (such as raw materials and labor) and indirect expenses (such as utilities, factory overhead).

However, it does not include the costs associated with selling the product or the administrative expenses of the business, as these expenses are not directly related to the production process. Simply put, it involves all the financial aspects helpful in bringing a product to life beyond just the visible direct expenses.

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Imagine you want to bake a loaf of bread. The costs for it will include direct expenses, such as the ingredients like flour, yeast, and salt, and indirect expenses, like the electricity used to operate the oven and the overall costs of maintaining your kitchen. In this case, the product cost is the total money spent to bring your bread idea to reality.


The formula for calculating the cost of producing the product is,

Product Cost = Direct Labor + Direct Materials + Factory Overhead

We can also calculate the cost per unit, as it can help us set a suitable selling price for the final product. The formula to calculate cost per unit is,

Product Cost Per Unit = Total product cost / Number of producing units


1. Direct Labor: Direct labor is the effort of employees to create the product or deliver the service. It includes:

Employees’ salaries

Medical or meal allowance benefits.

Example: A carpenter’s salary for creating a table from wood can come under the cost of direct labor.

2. Direct Material: Raw material or inventory used to create the final product can come under this category.

Example: The cost of wood and nails needed to create the table will come under direct material cost.

3. Factory Overhead: It refers to the costs that a company incurs for space, facilities, and support staff required to create a product. These costs come under indirect expenses. There is a formula to calculate this. It is,

Factory Overhead = Indirect Labor + Indirect Materials + Other Factory Overhead

Example: Overhead costs can include electricity costs or the salary of guard/security staff.

Product Costs on Financial Statements

Below we discuss the ways in which firms add the cost of the product to the three financial statements using the example of Apple Inc.

1. Income Statement

(Image Source: Apple Annual Report 2023 )

2. Balance Sheet

(Image Source: Apple Annual Report 2023 )

3. Cash Flow Statement

We do not enter the product costs directly in the cash flow statement. However, the cost of producing the product affects the working capital. As we add changes in working capital to the cash flow statement, we indirectly add the product cost to the cash flow statement.

So, when a company incurs product costs, the changes in working capital include changes in the accounts payable (due to purchases made), inventory levels (due to additions of product stock), and accounts receivable (pending payments from consumers). We add these in the operating activities section of the cash flow statement.

(Image Source: Apple Annual Report 2023 )

How to Calculate Product Cost?

Step 1: Determine the direct materials cost (add up the cost of all materials used to produce the product).

Step 2: Calculate the direct labor cost (multiply the hours of labor required to make the product by the labor rate per hour).

Step 3: Include the manufacturing overhead cost (calculate the overhead expenses such as rent, utilities, and equipment depreciation).

Step 4: Sum up the direct materials, direct labor, and overhead costs to get the total product cost.

Excel Examples

You can download this Product Cost Excel Template here – Product Cost Excel Template

Example #1

Direct materials =$10,000

Labor = $2,000

Overhead = $500

Other costs =$400

To determine the product cost, you have two options. First, you can calculate the product cost separately using the dedicated formula (Direct Labor + Direct Materials + Factory Overhead). Then, to find the cost per unit, you can use another formula (Total product cost / Number of producing units).

Alternatively, we have combined these two formulas into a single concise formula in this example. The formula is:

= (Direct Materials + Labor + Overhead + Other Costs) / Number of Units

= $13                     

Note: We have given screenshots of the Excel file so you can easily follow the calculations that we perform.

Hence, the total cost for creating 1,000 tables is $12,900, while the per-unit cost is $13.

Example #2

Macate bag manufacturing company produces a specific type of backpack. The company uses various materials and incurs direct labor and manufacturing overhead costs in the production process. Calculate the product cost for 6000 backpacks for the company based on the following information:

Direct materials = $45,000

Labor = $9,500

Overhead = $5,600

Other Costs = $4,000

1. As we already have the direct material, labor, and overhead values, let us use the cost per unit formula directly.

Product Cost = Direct Materials + Labor + Overhead + Other Costs

2. We calculate the product cost per unit using the following formula:

Product Cost Per Unit = Product Cost / Number of Units

Therefore, the cost per backpack for the bag manufacturing company is $11.

Note: This example provides a simplified calculation in a real-world scenario.

Example #3

Flour = 5 kg = cost per kilo = $10;

Cost for Flour = 5 x $10 = $50

Sugar = 3kg = cost per kilo = $13;

Cost for Sugar = 3 x $39

Others = $20

Additional Costs = $200

Step 1: First, we will calculate the raw materials cost using the following information:

Flour = $50

Sugar = $13

Others = $20

Step 2: Now, let’s calculate the labor cost using the following information:

Time taken to bake a packet of muffins = 1 hour

Employee pay per hour = $15

Units of muffins = 5

Step 3: Now that we have all the necessary details, let’s calculate the product’s cost.

Product Cost = Raw Material + Labor + Additional Cost

Step 4: Now, let us use the cost that we found to calculate the cost per unit. We can use the below formula for the same:

Product Cost Per Unit = Product Cost / Number of Units

Thus, the per unit cost of the product is $72.

Product Cost Calculator

Direct Labor Direct Materials Factory Overhead Product Cost =   Product Cost = Direct Labor + Direct Materials + Factory Overhead =









It helps businesses set a profitable as well as affordable selling price for their products. The calculator can be complicated and inaccurate in some cases.

Companies can use it to know how much profit each product or product line makes. Paying more attention to this formula can reduce the profitability of your business.

It helps businesses identify areas where they can lower or optimize costs. As this formula only uses internal costs, it provides a limited perspective on the cost of production.

Product Vs. Period Cost


Product Cost

Period Cost

Definition It is the total money the company spends on producing goods/ services. It is the total money that the company incurs in a specific period of time, such as a year or a month.

Examples It includes raw materials, direct labor, manufacturing overhead, packaging costs, etc.

Timing It considers the costs that are incurred during the production process. It focuses on a specific period of time, regardless of production.

Recording Companies record it as inventory at the beginning, and after selling the goods, they record it as costs of goods sold. Firms record these as expenses on the income statement.

Frequently Asked Questions (FAQs)

Answer: Calculating product cost is essential for:

Determining the profitability of a product

Making informed pricing decisions

Understanding the expenses associated with the production

Implementing cost control and budgeting.

Answer: Several factors can influence product cost, such as:

Fluctuations in raw material prices

Changes in labor rates

Variations in overhead expenses

Economies of scale

Production efficiency

Answer: Product cost refers to the expenses incurred in producing a specific product and is assigned to the inventory. On the other hand, period cost includes non-production expenses (e.g., sales and marketing expenses, administrative costs) incurred and recorded during the period they occur.

Answer: To reduce product costs, you can explore options such as:

Negotiating better prices with suppliers

Improving production efficiency

Optimizing resource utilization

Adopting cost-effective manufacturing processes

Implementing lean practices

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Int In Excel (Formula, Examples)

INT in Excel

INT in Excel is a very simple function used to convert any number into an integer value. Integer values are any number that is a whole number but can be a positive or negative number. Int function can consider any number, whether it is a decimal, fraction, or square root value, but in the end, we will be getting a whole number out of it.

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INT Formula in Excel:

Below is the INT Formula in Excel.


How to Use INT Function in Excel?

INT function in Excel is very simple and easy to use. Let us understand the working of the INT function in Excel by some INT Formula examples. INT function can be used as a worksheet function and VBA function.

You can download this INT Function Excel Template here – INT Function Excel Template

Example #1

The below-mentioned table contains a value in cell “C8”, i.e. 6.79, which is a positive number; I need to find out the nearest integer for 6.79 using the INT function in Excel.

Select the cell “E8,” where the INT function needs to be applied.

A dialog box appears where arguments (number) for the INT function need to be filled or entered.

i.e. =INT(C8).

It removes the decimal from the number and returns the integer part of the number, i.e. 6.

Example #2

The below-mentioned table contains a value in cell “C14”, i.e. -5.89, which is a negative number; I need to find out the nearest integer for -5.89 using the INT function in Excel. Select cell E14, where the INT function needs to be applied.

A dialog box appears where arguments (number) for the INT function need to be filled or entered.

i.e. =INT(C14)

It removes the decimal from the number and returns the integer part of the number, i.e. -6.

Example #3

In the below mention example, I have the date of birth ( 16th May 1982) in cell “J8” I need to calculate the age in cell “L8” using the INT function in Excel.

Before the INT function in Excel, let’s know about the YEARFRAC function; the YEARFRAC function returns a decimal value representing fractional years between two dates. I.e. Syntax is =YEARFRAC (start_date, end_date, [basis]). It returns the number of days between 2 dates as a year.

Here the INT function is integrated with the YEARFRAC function in cell “L8”.

YEARFRAC formula takes the date of birth and the current date (given by the TODAY function) and returns the output value as age in years.


It returns the output value i.e. 36 years.

Example #4

Usually, Excel stores the date value as a number, considering the date as an integer and the time as a decimal portion. If a cell contains a date and time as a combined value, you can only extract the date value using the INT function in Excel. Cell “P8” contains the date and time as a combined value. Here I need to extract the date value in cell “R8.”

Select the cell R8 where the INT function needs to be applied.

i.e. =INT(P8)

It removes a decimal portion from the date & time value and returns only the date portion as a number, where we need to discard the fraction value by formatting in the output value.

i.e. 11/12/18

Example #5

The below-mentioned table contains a value less than 1 in cell “H13”, i.e. 0.70, which is a positive number; I need to find out the nearest integer for decimal value, i.e. 0.70, using the INT function in Excel. Select cell I13 where the INT function needs to be applied.

A dialog box appears where arguments (number) for the INT function need to be filled or entered.

i.e. =INT(H13)

Here, it removes the decimal from the number and returns the integer part of the number, i.e. 0

Things to Remember

In the INT function, Positive numbers are rounded toward 0, while negative numbers are rounded away from 0. E.G. =INT(2.5) returns 2 and =INT(-2.5) returns -3.

Both INT() and TRUNC() functions are similar when applied to positive numbers; both can convert a value to its integer portion.

If any wrong type of argument is entered in the function’s syntax, it results in #VALUE! Error.

If the referred cell is not a valid or invalid reference in the INT function, it will return or result in #REF! Error.

#NAME? Error occurs when Excel does not recognize specific text in the formula of the INT function.

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Count In Excel (Formula, Examples)

What is COUNT in Excel?

The COUNT in Excel is a function that counts the number of cells that consists of numeric values in a selected range and ignores all the other entries in the range. For example, the formula “=COUNT(A6:A20)” counts all the cells with numerical values (code number) in the cell range A6:A20, which corresponds to 7.

The COUNT function counts numeric values, including the date, time, percentages, negative numbers, formulas, and fractions.

Key Highlights

The COUNT in Excel is a completely programmed function that can be used for an array

The COUNT function family has a total of five variants- COUNT, COUNTIF, COUNTIFS, COUNTA, and COUNTBLANK

To count logical values, we use the COUNTA variant of the COUNT function family

To count numbers meeting certain criteria, we use either COUNTIF or COUNTIFS function in Excel

The function COUNT in Excel does not count formula errors and logical values

The COUNT function counts dates, too, as Microsoft Excel stores the dates as serial numbers

The function COUNT in Excel does not count the logical values- TRUE or FALSE

COUNT in Excel Syntax:

The syntax for the COUNT Function in Excel is-

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Value1: A required argument of the COUNT function indicates the first item or cell of the specified range.

Value2: It is an optional argument of the COUNT function in Excel that denotes the second set of cells or ranges we wish to count. Once we put the first Value1, all other values become optional.

Note: We can provide up to 256 values to the COUNT function.

The return of the COUNT function is always either zero or greater than zero.

How to use the COUNT in Excel?

Consider the examples below to understand how we can use the function COUNT in Excel.

You can download this COUNT in Excel Template here – COUNT in Excel Template

Example #1


Step 1: Place the cursor in cell C7 and enter the formula,


The above formula will count the numeric values in the given list, as shown below.

Step 2: Press the Enter key to get the below result

The selected range contains 15 values, but the COUNT function in Excel only counts the numerical values and ignores everything else. As a result, it returns 4 as the total number of numerical codes.

Example #2

The table below shows a list of dates. We want to count the total dates using the COUNT in Excel function.


Step 1: Place the cursor in cell C8 and enter the formula,


Step 2: Press the Enter key to get the below result,

The total number of selected cells is seven, but the COUNT function returned the value 5 because two dates in the given list are written in an incorrect format.

The below image shows the dates with incorrect format (highlighted in RED)

Example #3

The table below shows the IDs of five employees, as well as their wages and attendance for the first week of January 2023. If an employee is present, his attendance is marked as 1; if absent, his attendance is marked as A. We want to use the COUNT function in Excel to calculate the Employee’s total wages based on his weekly attendance.


Step 1: Place the cursor in cell J6 and enter the formula,


Step 2: Press the Enter key to get the Total no. of Paid Days as shown below

The COUNT in Excel function returns the Total no. of Paid Days as 6.


Step 3:  Place the cursor in cell K2 and enter the formula,


Step 4: Press the Enter key to get the Total Wages of the week for Empl ID 1005

Step 5: Follow the same steps to get the Total wages for all the Emp IDs to get the below result

COUNT in Excel with IF condition



Example #4

Consider the above example of employees with IDs, wages, and weekly attendance. Using the COUNT and IF functions, we want to find eligible employees for Full Payment.


Step 1: Place the cursor in cell L2 and enter the formula,

=IF (COUNT(C6:I6)=7,” Full Pay”, “Not Full Pay”)

COUNT(C6:I6): There are 7 working days in the week. Therefore, an employee present on all the days will be eligible for Full Payment.

Thus, the condition is written as COUNT(C6:I6)=7

Step 2: Press the Enter key to get the below result


Step 3: Enter the same formula in the remaining cells to get the below output

Combined with the IF condition, the COUNT function shows that only the person with Emp ID- 1D006 is eligible for Full Payment. Since all other employees were absent on one or the other day that week, they are not eligible for full payment.

Difference Between COUNT and COUNTA

The function COUNT in Excel counts the number of cells having numeric values within a cell range, whereas the COUNTA function counts the number of non-empty or blank cells within a given range.

The function COUNT in Excel counts numeric values and dates, whereas the function COUNTA counts all the cells within a range irrespective of the data type.

Syntax of COUNTA function is-

=COUNTA (value1, [value2], …)

Difference between COUNT and COUNTA with Example

The table below shows 10 rows with 6 numeric codes, 2 non-numeric codes, and 2 blank cells.

The COUNT function counts the number of cells with numeric codes and gives the result of 6.

The COUNTA function counts all the cells having codes, excludes the empty cells, and gives the result of 9.

Things to Remember

Only numerical values are counted in the COUNT function.

The COUNT function ignores empty cells, text and string values, and error values in the array.

If the COUNT function is applied to an empty range of cells, the result will always be zero.

If a text follows the number, COUNT ignores that value also. For example, =COUNT (“145 Number”) would return the result as 0.

If logical values such as TRUE or FALSE are supplied to the formula, the COUNT function will count these logical values.

The result will be zero if the same TRUE or FALSE is supplied in a range.

If you want the count of all the values in the given range, use COUNTA, which counts whatever comes it’s way.

Frequently Asked Questions (FAQs) Q1) How do I count cells in Excel?

Answer: In Excel, we can count cells using any of the COUNT function variants: COUNT, COUNTA, COUNTIF, and COUNTBLANK.

COUNT: To count cells with numeric values

COUNTA: To count non-empty cells

COUNTBLANK: To count blank or empty cells

COUNTIF: To count cells meeting specified criteria

Q2) What is the significance of the COUNT function in MS Excel Class 9?

Answer: We can use the COUNT() function to sum or add the number of cells that contain numbers in the specified cell. The count function can perform the complex calculation of adding numbers in a large data set, thus saving time and effort.

Q3) What is the main difference between COUNT and Countif?

The COUNT in Excel function counts the number of cells containing numeric data or entries, whereas the COUNTIF function counts the number of cells meeting the given criteria.

For example, the table below shows students’ Maths marks out of 50. Here, we use the COUNTIF function to count the number of students who have scored more than or equal to 35 and passed the test.

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What Is Aws Redshift: The Benefits, Cost, And Setup?

We are living in an information overabundance. Welcome to the Data Age, where we make 2.5 quintillion bytes (otherwise called exabytes) of information consistently.

Introducing the misrepresentation of the day: “That is a ton of information!”

The present organizations use the information to pursue basic choices.

Information-driven choices are educated choices and have a more prominent likelihood of coming out on top.

What is AWS Redshift?

AWS Redshift is a well-known information warehousing arrangement that can deal with information on an exabytes scale.

You might be thinking about help for various use cases, for example, handling the ongoing investigation, consolidating different information sources, log examination, or more.

Made conceivable by its Massively Parallel Processing (MPP) innovation, Redshift can execute procedures on an immense volume of information at lightning speed — while regularly costing just a small portion of what contenders like Prophet and Teradata charge for identical items.

Each Amazon Redshift information stockroom incorporates a bunch of hubs coordinated into a group.

Each group runs its Redshift motor and holds something like one data set.

Even though Redshift is an examination data set, it’s sufficiently adaptable to permit cloud clients to run conventional social data sets.

Moreover, it’s a segment-situated data set that stores information in a columnar configuration that supports the presentation when it peruses and composes information.

Redshift is a completely overseen information stockroom, giving clients the limit, in any case, a couple of gigabytes of information and ultimately scaling it to petabytes.

It’s additionally called an OLAP-style (Online Analytical Processing) information base.

AWS Redshift Benefits

AWS Integration − AWS is one of the three generally famous and frequently utilized cloud arrangements (the other two being Purplish blue and Google Cloud), and Redshift functions admirably with Amazon Web Administrations.

Information Encryption and Security − Amazon offers many layers of safety to its clients, including access control, virtual confidential mists, and intentional information encryption; the client can conclude what needs encryption.

Speed − Redshift offers unrivaled speed because of MPP innovation.

Handily Sent − You can convey a Redshift bunch in minutes and for a small part of the expense of a conventional information distribution center.

Standard, Reliable Reinforcements − Amazon conducts normal, predictable reinforcements prepared for use in reestablishes and information recuperation activities. Moreover, Amazon stores this information across a bunch of areas.

You Can Utilize Natural Apparatuses − Redshift utilizes PostgreSQL, so all SQL questions work with it. Additionally, you can pick any ETL (Concentrate, Change, Burden), SQL, and Business Insight (BI) devices you normally use.

Dull Undertaking Mechanization − Nothing is as irritating and tedious as playing out a similar disturbing nearly nothing (yet totally vital) errands consistently (or week, month, or makes no difference either way). Redshift allows you to mechanize these bothersome redundant positions, liberating your staff to handle the additional difficult obligations.

AWS Redshift Cost

Costs start as low as USD 0.25 every hour for a terabyte of data, and you can scale starting there. The continuous assessment information was given by Amazon’s Redshift esteeming page.

Amazon, in like manner, offers a compensation more-just as-costs-emerge assessing structure, which changes with your necessities.

Outline. With Amazon Redshift, you can begin at $0.25 each hour and scale up to petabytes of information and many simultaneous clients. Pick common decency for your business needs, with the capacity to develop capacity without over-provisioning registering, or stockpiling.

How Would I Set Up Amazon Redshift?

Setting up Amazon Redshift is simple

Get an AWS account: On the off chance that you do not have an Amazon Web Administrations account as of now, set one up.

Open a firewall port: Redshift needs an open port, and it commonly defaults to port 5439, so ensure that the port is accessible in your firewall. On the other hand, you can recognize an alternate open port in your firewall when you make your group; however, be cautioned: you can’t change the port number after making the bunch.

Award consent to get to other AWS assets: You want to allow Redshift to get to other AWS assets. Either make a devoted IAM job joined to a Redshift bunch or give the AWS access key to an IAM client with the usual consent.

Send off a Redshift bunch: Sign on as the client with the necessary consent and open the Amazon Redshift console.

Pick the area: Select the locale where you need to make your most memorable bunch.

Enter the qualities: Select the Fast Send-off Group and fill in these qualities −

Node type: dc2.large.

The number of process nodes: 2.

Group identifier: examplecluster.

Master client name: awsuser.

Master client secret phrase and Affirm secret word: Enter a secret phrase for the expert client account

Data set port: 5439.

Accessible IAM jobs: Pick myRedshiftRole.

Approve access: You should design a security gathering to approve access. On the off chance that the bunch comes from an EC2-VPC stage, follow these means.

Starting here, you can perform undertakings like running questions. Once more, counsel the AWS site for additional nitty gritty directions.


Many clients pick Amazon Redshift to speed up their opportunity to experience since it’s not difficult to utilize, it conveys execution at any scale, and it allows you to investigate every one of your information. You can pick the provisioned choice for unsurprising responsibilities or go with the Amazon Redshift Serverless choice to the consequent arrangement and scale the information distribution center’s ability to convey elite execution for requesting and flighty jobs.

What Is Adhoc Testing? (Types, Examples)

Adhoc testing is frequently carried out to break the system in unusual ways. Adhoc testing’s most remarkable aspect is that it lacks any test design approach for creating test cases.

The procedure is generally used to identify software flaws. Because adhoc testing lacks test cases, it is often carried out without documentation.

Take a closer look at the procedure. Ad-Hoc testing is a kind of testing that comes under the category of ‘Unstructured Testing.’

Structured Testing Vs. Unstructured Testing

StructuredTesting − Everything that happens throughout the testing method, from the development of test cases to their sequential execution, is written in this technique. This script is followed by the testers while doing tests.

Unstructured Testing − Testing is typically done by error guessing in this technique, where the testers construct the test cases throughout the testing process.

Adhoc Testing

Adhoc testing is a term that refers to testing that is done on the fly. It is a form of unstructured testing technique, as described above, in which no systematic strategy is made before the testing process begins. As a result, no requirement specification or test case preparation and design is done prior to testing.

Ad-hoc testing is generally carried out by a tester who is well-versed in the program under test, both in terms of what it does and how it works. This testing is carried out by constructing test cases at random using error guessing and running them without regard for any test criteria.

Finding possible regions of the program where mistakes may exist is an important aspect of this testing. Because of this, it’s also known as Monkey Testing or Random Testing. As a result, only those testers with a thorough understanding of the product should execute this test.

Ad-Hoc testing has the benefit of saving time that would otherwise be spent on documents such as test requirements, test case planning, design, and so on. It is also often done after the structured testing has been completed. This is done in order to uncover software problems that would not have been found by following the previously prepared test cases.

Adhoc Testing Types

Following are some of the types of Adhoc Testing −

Buddy Testing

Monkey Testing

Pair Testing

Buddy Testing

In this sort of Ad-Hoc testing, at least two individuals work together to conduct the tests. At least one software tester and one software developer normally make up this team.

This sort of testing occurs after the unit testing of a module has been finished.

On that module, the two ‘buddies’ collaborate to develop legitimate test cases.

This is done to ensure that the tester does not report problems caused by incorrect test cases. This form of testing may also be thought of as a hybrid of unit and system testing.

Monkey Testing

The term ‘monkey testing’ refers to the unpredictability of the technique utilized in this testing.

Random inputs are presented to the program under test, and their associated outputs are monitored.

Any occurrences of errors, inconsistencies, or system failures are identified based on the acquired outputs.

Pair Testing

This kind of testing is similar to buddy testing. In this case, however, just a couple of testers collaborate on the modules for testing.

They collaborate to uncover faults and problems by sharing ideas, views, and expertise on the same computer.

To acquire a distinct perspective on each issue, testers are partnered according to their knowledge levels and experience.

Adhoc Testing Characteristics

This testing occurs after the program has been subjected to formal testing methodologies. The reason for this is because ad-hoc tests are performed to discover application abnormalities that cannot be foreseen prior to testing.

This testing can only be carried out by testers who have a deep understanding of how the program works. Because good ‘error guessing’ can only be done when the tester understands what the program does and how it operates, this is the case.

The Ad-hoc testing approach is best for detecting defects and inconsistencies in an application that lead to serious gaps. Errors like this are often difficult to spot.

This kind of testing requires less time than other types of testing. This is due to the fact that it is carried out without any previous planning, design, or structure.

Ad-hoc testing is done just once since any faults discovered need retesting.

Adhoc Tests Examples

Testing an application’s functionality when the browser settings are altered. Identifying faults that occur when the JavaScript option is deactivated in various browsers, for example.

Putting the app through its paces on several platforms. It’s critical to test if the produced application runs smoothly across a variety of operating systems and browsers.

Providing inputs to the system that are outside of the valid-inputs range in order to see whether the application’s response is adequate.

Copying and modifying the application’s URL to make it run in a different browser. This is done to ensure that unauthenticated access to the system is not granted to any unauthorized users.

Going through a series of random actions or traveling around the program at random in order to verify the outcomes achieved by using a certain combination of odd inputs.

When Should Adhoc Testing Be Conducted?

When there isn’t enough time to complete extensive and thorough testing, which involves producing test requirements documents, test cases, and test case designs, ad-hoc testing is usually used. Following the completion of formal testing methodologies is the ideal time to undertake this sort of testing.

Ad-hoc testing, on the other hand, may be carried out in the midst of software development. It may be done after the program has been completely created, or even after just a few modules have been produced. It may also be carried out as part of the official testing procedure. However, there are a few instances in which this testing is not required. As a result, every tester must be aware of when to avoid this kind of testing.

The following are some examples of why ad-hoc testing should not be done −

When Beta testing is in progress, no ad hoc testing should be done. This is due to the fact that beta testing entails customers evaluating the generated software in order to make ideas for new features that should be included or to modify the requirements for it.

It is also recommended that this testing not be carried out in test cases that already include problems. Before the mistakes can be deleted from the system, they must first be properly recorded. The test cases must be retested once they have been fixed to confirm that they are operating properly.

What Benefits Does Adhoc Testing Offer?

Many mistakes that go undiscovered when just formal testing techniques are employed may be uncovered by randomly testing the program, which is one benefit of ad-hoc testing.

The testers are allowed to explore the program as they see fit, based on their intuition and comprehension of it. They may then run the tests as they proceed, assisting them in identifying mistakes as they go.

The application can be simply tested by both testers and developers since no test cases need to be prepared and built. This makes it easier for developers to write more effective and error-free code.

This testing may also aid in the construction of one-of-a-kind test scenarios that can discover problems ineffectively. As a result, such test cases may be combined with other scheduled test cases in formal testing.

Because there is no formal method for ad-hoc testing, it may be done at any point throughout the software development lifecycle.

It may be used in conjunction with other testing methods to create more informed and effective findings.

Drawbacks of Ad hoc Testing

It’s difficult for the tester to recreate an issue since the testing method isn’t defined and no specific test case is performed. This is because the tester must recall the precise procedures he took to get the mistake, which is not always achievable.

Erroneous errors are sometimes reported as a result of the tester randomly executing invalid test cases, which causes a problem in the following error correcting operations.

Ad-hoc testing will not be able to find any mistakes if the testers do not have previous knowledge of the workings of the application under test. This is due to the fact that testers must work through error guessing and construct and run test cases on the fly.

Ad-hoc testing does not guarantee that faults will be discovered. Proactive error guessing for testing is entirely dependent on the tester’s competence and expertise.

The amount of time and effort that goes into this testing is unknown since there are no previously established and documented test cases. Finding even a single mistake might take a long time in certain cases.

Conducting Adhoc Testing: Best Practices

It’s critical to understand the most effective and efficient methods to use the Ad-Hoc testing methodology in order to perform it properly. This is because if tests are not completed properly, the time and effort invested in them would be squandered. As a result, in order to undertake this sort of testing, one must be aware of the best practices that may aid in a more complete testing approach −

Expertise in Software

Ascertain that the tester assigned to the application’s ad-hoc testing has a thorough understanding of the application.

To support better ‘error guessing’ on the application, the tester must be conversant with all of the program’s capabilities.

Finding more mistakes, flaws, and inconsistencies becomes simpler with enough information to back up the tester’s testing method.

Identify Potentially Error-Prone Areas

If testers are unfamiliar with the program, the best approach is for them to begin their testing by looking for the section of the application where the most of the mistakes occur.

Selecting such sensitive locations for ad-hoc testing may aid in the detection of problems.

Determine which areas of the test should be prioritized.

It is best to begin testing with the portions of the program that are most often utilized by end-users or customers. This aids in the protection of critical features and the early detection of any bugs.

Make a rough plan for the test.

Although adhoc testing does not need any previous preparation or documentation, a basic strategy may be highly beneficial and efficient. Simply noting the important points and locations that need to be tested will assist the testers in covering most of the program in the shortest period of time.


To make testing easier, you’ll need the necessary tools such as debuggers, task monitors, and profilers.

What Is Duopoly? Types, Examples, Characteristics, Pros & Cons

What is Duopoly?

In a monopoly, a single player dominates the market for a particular product. In contrast, in a duopoly, two players have a clear dominance for a specific product. The two players compete with each other to increase their market share and often serve a loyal customer base of their own.

Key Highlights

A duopoly is where two companies hold a majority, i.e., 50% or more of the market share.

The two companies are interdependent while enjoying a monopoly for their loyal base of customers.

It is of two types: Cournot, and Bertrand, based on what triggers the competition between the two companies.

There are various real-life examples like Apple, Samsung, Airbus, and Boeing.

How Does it Work?

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The producer from two companies dominates in a Duopoly, a particular product in a market sector. In this condition, various companies compete with each other by lowering the prices of their products. This situation benefits the consumers.

Even though there will only be two competitors in the market, with the mutual acceptance between these two companies, it can become a monopoly. A monopoly is a condition in which a single producer of the product in the market will exist.

Types Cournot

According to this, the volume of goods or services produced decides the competition between the two players.

The two companies produce their goods to maximize profits. Thus, in the long run, an equilibrium is set for both companies in terms of output.

Hence, there is no incentive to start a price war. There is no collusion between the companies, and each company produces to maximize its profit.


In this market, price competition exists between two firms, and customers opting for the lowest prices can create a price war.

The two firms implement low pricing strategies leading to their depleting profits.

In this, customers enjoy purchasing goods and services at low prices while profits for companies dwindle due to existing competition.

Examples Boeing and Airbus

Boeing and Airbus have been considered duopolies in the large jet airplane manufacturing market since 1990.

Together, they own nearly 90% of the market share of airplane manufacturing.

The creation of Airbus made airplane manufacturing more competitive, forcing Boeing to be more price competitive and present an excellent service.

Apple and Samsung

Apple and Samsung companies combined to dominate the smartphone market.

The remaining smartphone manufacturers contribute less than 25% of the smartphone industry.

Visa and Mastercard

Visa and Mastercard are considered Duopoly in card payment services.

Of all the card transactions in European countries, 80% are through Visa and Master cards.

Coca-Cola and Pepsi

Another example is in the beverage industry, where Coca-Cola and Pepsi dominate.

Coca-Cola has a 43% market share, while Pepsi has 29% giving both companies a concentration of more than 70% in the cola market.

While both players spend a fortune to promote their brands, they do not launch a campaign against each other as it may be mutually harmful, as seen in their earlier campaigns in the 1970s.


The two big players affect each other’s decisions.

The change in the price of the product by one player will also influence the pricing strategy of another player.

Similarly, launching a different quality product within the same niche will force another player to launch a similar product to stay competitive.

As there are only two players for the majority market share, each player develops a loyal customer base over time. Hence, they enjoy significant individual monopoly powers. For example, Samsung and Apple have developed a substantial, loyal customer base, and now Apple enjoys a monopoly for its market share of customers.

The two players avoid head-to-head competition as it is mutually harmful.

The duopolies are neither compatible nor conflicting and tend to focus on their work to win the market share.

How is Duopsony Different from Duopoly?



Duopsony is an economic condition with only prominent buyers for a particular product or service. Two big players have more than 70% market share for the supply of the product.

Duopsony is also called buyer’s Duopoly and is a category of an oligopsony. It is a form of oligopoly.

For example, Intel Corporation and Advanced Micro Devices Inc are the leading manufacturers of microchips. For example, Flipkart and Amazon are leading e-commerce companies.

Companies benefit by cooperating. It limits free trade.

The two companies collude to decide upon a rate that maintains demand equilibrium and maximizes profits without competitors.

Companies concentrate on improving the quality of their existing products. Goods and services lack diversity and innovation.

Final Thoughts

A few decades back, the market had monopolies of a handful of companies in each sector that controlled the prices and supply of utilities. Now, there is a significant presence of duopolies around the world. It provides just the right amount of competition so that companies can not take market share for granted and still work on products without worrying about disruptions. It is necessary for the sector where quality is more important than price, like airplane manufacturing.

Frequently Asked Questions(FAQs) Q1. How is an oligopoly different from a duopoly?

Answer: In a monopoly, there is just one major supplier. In a duopoly, there are two major suppliers of a particular good or service. In an oligopoly, there are several interdependent firms that influence each other.

Q2. What is a duopoly market? Who introduced the term? Q3. Why is duopoly good?

Answer: Duopoly is a good practice for companies as they can continuously operate the market according to their requirement. They can increase the prices and update the product according to new standards.

Q4. Is duopoly legal?

Answer: With some conditions, a duopoly is legal. Both companies should refrain from collusion, as it may result in higher consumer prices. Collusion may also result in one company becoming a monopoly. Thus, collusion is illegal in the US, but duopoly is legal.

Q5. Is a duopoly form of business beneficial to the economy?

Answer: A duopoly is an efficient form of business. In a sector where quality and constant supply are more important, it is very beneficial as firms can concentrate on the quality of goods without worrying about disruptions.

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