A way to arrive at accurate costing is to dissect the cost into different elements, roll-up this cost and apply markups to finalize it. These elements are identified as Cost Types in the system.

Let us see how you can start creating a cost hierarchy for your products and analyze the margins on the cart. To get started, you need to:

1. Define a Cost Model.
   1. Set a Cost Hierarchy by adding Cost Types.
2. Associate the Cost Model with a Price List.
3. Configure a Presto App (using X-Author) to store product prices.
4. Fetch prices for the Cost Types by adding a Presto Callback.
5. Analyze pricing from Analyze Quote button on the cart.