COST OF PRODUCTION

[sunandaC]

COST OF PRODUCTION


Cost of production plays a very important role in manufacturing business because in manufacturing firm most of the cost of the production is related to its product and for making the product some of the costs are explained below:


 MATERIAL COST: Materials are the principal substances that go into the production process and are transformed into finished goods. Material cost covers around the 80% of the total cost of the production which is most important in manufacturing any product. The raw material which is required for our business is paper mostly because we require the papers for the publication of the yellow pages.


 LABOUR COST: Labor is the human, physical and mental effort that goes into the production of a product.


 FACTORY OVERHEAD COST: Factory overhead cost are those cost which are incurred in the factory while converting the raw material into the finished goods some of the factory overheads are depreciation on factory building, depreciation on machinery, factory rent, indirect wages etc are the factory overhead cost.

 

[jitenmazee]

COST OF PRODUCTION


Cost of production plays a very important role in manufacturing business because in manufacturing firm most of the cost of the production is related to its product and for making the product some of the costs are explained below:


 MATERIAL COST: Materials are the principal substances that go into the production process and are transformed into finished goods. Material cost covers around the 80% of the total cost of the production which is most important in manufacturing any product. The raw material which is required for our business is paper mostly because we require the papers for the publication of the yellow pages.


 LABOUR COST: Labor is the human, physical and mental effort that goes into the production of a product.


 FACTORY OVERHEAD COST: Factory overhead cost are those cost which are incurred in the factory while converting the raw material into the finished goods some of the factory overheads are depreciation on factory building, depreciation on machinery, factory rent, indirect wages etc are the factory overhead cost.

The cost of production is identified by the claculating the cost of the resources and factos of production (including labor, capital, or land) and taxation. In order to get the complete details, please check my presentation and hopefully you people would like it.