what do you mean by cost of production?????
Answers
Answer:
Production or product costs refer to the costs incurred by a business from manufacturing a product or providing a service. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.
Answer:
Cost Of Production
Cost refers to the expenses incurred by producer to produce goods and services. Wages, Rent, interest, insurance premium, electricity charges, cost of raw materials , Transportation, wear and tear, expenses for training employees atc are examples of costs.
⟶ It refers to the money expenditure by a firm on factors of production for producing a commodity which consists of :
• Real Cost
• Money Cost
Real Cost :
It refers to the pains and sacrifices undergone in the production process. It cannot be measured.
Money Cost :
Money Cost is the cost expressed in terms of monet.
⟶ It is divided into 2; Fixed cost and variable cost. These are short run costs.
There Are Different Types Of Cost :
- Short Run Costs
- Total Fixed Cost ( TFC )
- Total Variable Cost ( TVC )
- Total Cost ( TC )
- Average Variable Cost ( AVC )
- Average Fixed Cost ( AFC )