Monthly Archives: January 2026

The Costing System That’s Quietly Breaking Cannabis Margins Traditional costing methods used in cannabis—primarily the Statement of Cost of Goods Manufactured (COGM) and Equivalent Units of Production (EUP)—were never designed for a biological, long-cycle, multi-output manufacturing environment. When applied to cannabis, these methods introduce compounding errors at every stage of the production lifecycle. The

Understanding Cannabis Manufacturing Costs: Direct, Indirect, and Why It Matters In cannabis, everything we grow or make is produced in batches. An Afghani strain batch. A batch of lemon gummies. A batch of pre-rolls. Like the food and pharmaceutical industries, cannabis is a batch manufacturing process. And if you want to understand your profitability,