Production cost

Production Cost Advantage
A source of competitive advantage that depends on producing some product or service at the lowest cost.

PRODUCTION COST: The opportunity cost of using labor, capital, land, and entrepreneurship in the production of goods and services. Production cost is important to supply. The price received by a seller must be great enough to cover production cost.

Production costs that do not change when the quantity of output produced changes, for instance, the cost of renting an office or factory space. Contrast with variable costs.
Flotation ...

any factory or production cost that is indirect to
the product or service; it does not include direct material
or direct labor; any production cost that cannot be directly
traced to the product ...

barely covering production cost nearly unable to cover the cost of production when selling goods or when goods are being sold
marginal - Related Articles
Marginal Cost
Calculations ...

Fixed costs - production costs that are not related to the level of production; also referred to as overhead costs.

accounting term for production costs incurred for equipment, props, special effects, rentals, location fees, and anything else of a technical nature needed for a specific commercial shoot.

Variable plus fixed production costs
Dividend per share (gross)
Total amount paid as dividend divided by the number of shares issued at closing date ...

Pre shipment Finance Short term funding for inventory and production costs associated with manufacturing goods being exported.

Cost accounting A branch of accounting that provides information to help the management of a firm evaluate production costs and efficiency. Cost basis The original price of an asset, used to determine capital gains.

Inflation-escalator clause A clause in a contract providing for increases or decreases in inflation depending on fluctuations in the cost of living, production costs, and so forth.

A production facility established by a foreign firm through FDI in a country in spite of its higher production costs, in order to serve its market without paying a tariff.
Tariff heading ...

This is due to different factors and to its specific characteristics linked to its structure, its easily transportable liquid status and utilisability as compared to carbon, low production costs, and the wide use through the energy sector.

As production costs fell quickly, wages rose slowly, and prices remained constant, the bulk benefit of the increased productivity went into profits.

Gross margin, sometimes called gross profit, is the percentage by which profits exceed production costs. To find gross margin you divide sales minus production costs by sales.

How do you account for winery production costs? (How do they keep track of capitalized vs. deducted costs?)
What facilities are used for crush/ferment versus barrel/bottle aging versus post-production warehousing?

On the other hand, exchange-rate fluctuations could make international investment more appealing, in that they can be used strategically to lower production costs.

A systematic study of production costs could be undertaken by examining job cost sheets or departmental reports; the production processes themselves could be observed; various cost components could be analyzed to determine cost formulas.

As its name suggests, only variable production costs are assigned to inventory and cost of goods sold. These costs generally consist of direct materials, direct labor, and variable manufacturing overhead.

Other more unusual measures are retaining a headquarters at a specific site for a period of time, amount of production increase or production cost decrease per unit or the requirement to bring a given technology to a commercial market.

A shift to the right in the aggregate supply curve signifies such events as a decrease in overall production costs (e.g. decrease in labor costs, technological innovation, subsidies, etc.).

However, who ultimately pays the tax (the tax "burden") is determined by the marketplace as taxes become embedded into production costs.

An increase in the federal minimum wage did create an increase in production costs, which subsequently resulted in an inflated price for consumers.

For example, if a business firm's objective is to make the biggest profits possible (as economists generally assume it is), then the firm's optimal level of output at any given level of sales prices and production costs is that at which its profits ...

In managerial accounting, production costs that are incurred only when a new batch is processed. These costs might include things like set-up time, moving materials and loading machines.

Simultaneously, concentrating on reducing direct production costs, either through supplier negotiations, or more efficient production techniques, ...

Conventional textiles are not able to meet the production cost and higher cost of upgradation along with demanding consumers in new fields of consumption.

the price that must be charged under a contract regardless of production costs. Or 3.

It can also be defined as the production cost of a proposed product such that when the product is sold it generates the desired profit margin.

The best and most obvious example are physical costs of goods sold, direct costs, such as materials, products purchased for resale, production costs and overhead, etc.

Short term funding for inventory and production costs associated with manufacturing goods being exported. Presidential election cycle theory ...

These can be things like machinery, raw materials, wages, production costs etc. The aim of all business is to make money. A simple example would be a business that makes and sells tables. Whenever a table is sold the business brings in revenue.

The difference between a company's sales revenues and its production costs (such as inventories, raw materials, wages, etc.) before taxation.
Français: Profit brut
Español: Beneficio bruto
Gross weight: ...

Billings
Total amount charged to clients, including the agency commission, media costs, production costs, etc.
Bleed
Allowing a picture or ad to extend beyond the normal margin of a printed page,
to the edge of the page.

A method of valuing the cost of INVENTORY; a specialized costing method that combines beginning inventory costs with the current-period production costs less the ending inventory.

If the input prices used to calculate the cost of production use those of the most recently acquired stock items then production costs will be more closely related to their value than if older stock items are used.

A pricing method where the purchaser agrees to pay the production cost of the good plus a fixed percentage to the seller for profit.
Countervailing Duties (CVD) ...

There are places that have a higher or lower production cost, but let's use the figure of $600 to understand the effect of this correction. Gold would sell after the correction for $1,100 per ounce.

What it costs to produce the product or service. The amount of material, labor and any other production costs directly attributable to producing the product or service.
Coupon ...

Definition: Industries which can set up in a variety of locations without affecting production costs.
Related glossary term:
Factor mobility ...

Cost-saving group incentive plan in which a standard cost of production is established and the employees share in the cash savings of production costs under that amount. Improshare stands for improved productivity through sharing.

A clause in a contract providing for increases or decreases in inflation depending on fluctuations in the cost of living, production costs, and so forth.
Inflexible expenses ...

Profit Squeeze
Definition: Difficulty in maintaining profit margins over a period of time, due to reduced prices or rising production costs.

The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output.

Cost Budgets Budgets prepared for every major expense category of the firm, such as administrative cost, financing cost, production cost, selling cost, and research and development.

In depreciation it is the asset's cost that is assigned to each of the years that the asset is in use. In cost accounting it is the assigning of common production costs to various production departments, product lines, individual products, ...

An example of a manufacturing company outsourcing would be Dell buying some of its computer components from another manufacturer in order to save on production costs.

The ideal is to find yours by experimenting and then set is just below that mark. Don't make the mistake of pricing low because production cost is zero. Price it according to the benefits it provides.

Inflation may occur when purchasing power is in excess of goods and services for sale, when buyers stampede to convert money into commodities, or when production costs and prices advance to consecutively higher levels.

the cost of materials and fabrication or other processing employed in producing the merchandise, general expenses of not less than 10 percent of material and fabrication costs, and profit of not less than 8 percent of the sum of the production costs ...

processor inflated by 90 to 65 nanometers of circuitry that’s making the PS3 what it is. That’s why Sony wants to increase the PS3’s profitability by scaling down the processor to 45 nanometers and slimming down the production costs ...

GROSS PROFITS The gross profits from a business transaction are the amount computed by deducting from the gross receipts of the transaction the allocable purchases or production costs of sales, ...

Cost Accounting The process of identifying and evaluating production costs. cost basis Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes.

See also: Expense, Values, Banks, Compensation, Invoice