> what is manufacturing costs?

what is manufacturing costs?

Posted at: 2015-07-28 
Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labor cost and manufacturing overhead.

Manufacturing cost is one of unavoidable cost in the business. If the producer producing the product containing the so many cost for first step to last step for delivery process. That type of cost is called as a manufacturing cost.It includes the raw material consumption, selling and distribution expenses etc.

Manufacturing costs all companies benefit from determining the cost of providing product or services to the customers.It is one of the unavoidable cost in the business.It is three categories.

1.Direct material

2.Direct labour

3.Manufacturing overhead

Manufactruing costs are are the costs necessary to convert raw materials into products.Raw materials includes selling and distribution expenses etc..It cost including in direct labour, diectmateial and factory over head and assembly , testing.

The amount of money you spend to buy the items needed to make the products plus the cost to make ad the time it takes a person to do so

Everything involved in producing something - raw materials, machinery, wages, building rental/council tax, electricity bills, and anything else that might be involved.

raw material, equipment to build, various expenses like labor