Question

what do you mean by cost of production?????​

Answer 1

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 2

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 )