by
Muhammad Arshad Kadhar , Head of Internal Audit (Sr. Manager) , National Testing Service Pakistan
Cost of Production Means Cost of Producing any Item or Unit.
The Cost of Production have Three Elements of namely:01) Raw Material Consumed,02) Direct Labor and03) Factory Overheads - FOH.
Cost of Production tells the costs incurred in order to produce or manufacture and goods or units for resale or internal usage.
If Cost of Production is known then profitability of the goods sold can be calculated easily.
by
Mirela Minculeasa , Accountant (Accounts Payable and Receivable) , DoubleTree by Hilton Jumeirah Beach
represents the value of the consumption of living and materialized labor performed in order to obtain a product at a time, consumption that takes the form of production and sales costs borne by company.
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.
