The production price of your goods in stock should include all expenses that were made in direct connection with producing them. However, what happens if it’s not so and the pricing only includes the direct material for an example? 

Simple math says that if the price of them is not correct and doesn’t include all expenses you made in producing them, you may end up earning gross losses where you could ensure that you earn not only profits from the sale, but you also cover for the operating expenses not related to production but your business in general.

Normally the price of goods should include all expenses made in direct connection with producing them and including a standard profit margin that’s calculated from the proportion of operating expenses from the cost of goods sold (that is expenses made in producing) and then some more for your net profit you get your selling price. You need to know your expenses that you want covered with selling price and what you need to add to earn profits at the end of the day.

So in result, if the pricing is off, you are operating on a great risk of ending up in losses. Is that what you want? Seems only reasonable to analyse expenses to know what needs to be covered.