Cost Classification in Production

Front

Direct labour costs refer to the cost of paying employees directly involved in the production process.

Back

Front

Components needed for finished products.

Back

Movement units, hinges, fixings, adhesives, and packaging are needed to produce finished products.

Front

Administration team responsibilities.

Back

The administration team handles HR, salaries, IT support, marketing, customer services, research, purchasing, and stock control.

Front

Salary comparison in manufacturing.

Back

Management team members typically earn more than shop floor workers.

Front

Manufacturing overheads are important to the finished product.

Back

They are as important as the cost of making the product.

Front

Improved manufacturing processes may require new equipment.

Back

This can result in additional costs for the company.

Front

Depreciation of factories and equipment adds to overheads.

Back

Consumables like lubricants and water also fall into this category.

Front

Image of a manufacturing plant with equipment.

Back

Visual representation of manufacturing equipment and plant setup.

Front

General overheads cost per unit is £2.60.

Back

£2.60

Front

The overhead rate is approximately £2.16 for every £1 in direct labour costs.

Back

£2.16 for every £1 in direct labour costs