cost of production

Related Terms
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.

Use 'cost of production' in a Sentence

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.
16 people found this helpful
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.
15 people found this helpful
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.
14 people found this helpful

Email Print Embed

Mentioned in These Terms