Cost of production,
Definition of Cost of production:
The costs related to making or acquiring goods and services that directly generates revenue for a firm. It comprises of direct costs and indirect costs. Direct costs are those that are traceable to the creation of a product and include costs for materials and labor whereas indirect costs refer to those costs that cannot be traced to the product such as overhead.
How to use Cost of production in a sentence?
- The company went bankrupt because rent, utilities, supplies and the high cost of production in general made their product too expensive for the average consumer.
- We try to save money in places that we can but we must also be able to lower the cost of production when making changes in the workplace.
- The cost of production for bringing a new product to shelves is often so much that the decision must be highly considered to wage whether it has a payback time that is worth the wait.
Meaning of Cost of production & Cost of production Definition