Question

when determining the cost of manufacturing a product, whay considerations are included in the cost?

Answer 1

factors affecting the cost of manufacturing of a product

1. cost of raw materials, the more is the cost of raw materials the more will be the cost of production

2. the use of technology involved in the production of the good, some goods manufacturing requires huge machinery which is quite expensive while some goods require small scale production techniques.

3. the availability of cheap and skilled labor required for the production oif that good.

4. government support and costs required for licenses for the production function to take place.

5. the subsidies and govt schemes that are related to the manufacturing of that particular good.

6. the price of oil and transportation play a major role in any production industry,

7. the type of market for the good that we are manufacturing also plays a role in determining the cost of the good manufactured.

8. If you want something quickly this can impact the cost depending on the project. Manufacturing a product quickly is more expensive than a longer lead-time. It’s all about resource management for the manufacturer. A quick turnaround means dedicating more resources, both in terms of manpower and machinery, which will inevitably be a bit pricier than a longer turnaround time

9.