Several product costing methodologies have been developed throughout the years. However, most of these techniques are distribution based, where the products cost fluctuates with the production volume and the utilization of facilities. In this study, a new approach was developed which allows the costing of products at each level of materials flow based on the time-use of the facilities, and independently of the volume produced. By developing use-rates for the cost producing elements, coupled with a computer-based information system, all costs are accumulated and fully absorbed at each stage, beginning with the creation of the product until its distribution to the customer. Standard and actual costs can be compared for different production runs, by batch, by operation, by machine, by department, and by facility. Therefore, management is able to pin point production variances, cost variances, utilization and efficiency measures, and product cost control.