Manufacturing Cost

Capital costs are _.

• One time large expenses

• Periodic costs over time

• unchanged costs regardless of production

• costs based on production rate

Variable costs are _.

• One time large expenses

• Periodic costs over time

• unchanged costs regardless of production

• costs based on production rate

Operating cost costs are _.

• One time large expenses

• Periodic costs over time

• unchanged costs regardless of production

• costs based on production rate

fixed costs are _.

• One time large expenses

• Periodic costs over time

• unchanged costs regardless of production

• costs based on production rate

Please sort the following items as their respective costs type

Groups:

(a) Captial

,

(b) Fixed

,

(c) Variable

• Large Machine

• Land

• insurance

• Shipping

• Robots

• Material

• Rent

• maintenance

• utilities

• Building

• Salary employee

• Labor

A ​ (a)   will increase the value of raw material as it's produced into a product while​ (b)   will not directly increase the value of the material, no matter its importance.

• value-added task
• non-value added tasks
• wasteful processes
• unproductive activities
• inefficient methods

Typically, as ​ (a)   increases the cost of production​ (b)  

• automation
• decreases
• manual labor, stays the same
• outsourcing, stabilizes
• innovation, fluctuates

What is included in product costs?

• Product costs include: Direct Labor, Factory Supervision, Indirect Materials, Depreciation of production equipment, Insurance of factory, direct materials

• Product costs include the expenses incurred in the administration process such as office rent, salaries of the management team, and office supplies

• Product costs include the expenses incurred in the financing process such as interest on loans, dividends, and stock issuances

• Product costs include the expenses incurred in the selling process such as advertising, sales commissions, and shipping costs