Mechanical Engineering - Industrial Engineering and Production Management - Discussion
Discussion Forum : Industrial Engineering and Production Management - Section 1 (Q.No. 8)
8.
Production cost refers to prime cost plus
Discussion:
12 comments Page 1 of 2.
Anmol Bhatia said:
1 decade ago
Prime cost = Direct material cost+Direct labour cost+Direct Expenses.
Factory Cost = Prime Cost+Factory Expenses.
Production Cost = Factory Cost+Administrative expenses.
Total Cost = Production Cost+selling expenses+Distribution Expenses.
Selling Price = Total Cost+Profit.
According to these relations.
Production cost = PRIME COST+ FACTORY EXPENSES+Administrative expenses.
[B] should be correct.
Factory Cost = Prime Cost+Factory Expenses.
Production Cost = Factory Cost+Administrative expenses.
Total Cost = Production Cost+selling expenses+Distribution Expenses.
Selling Price = Total Cost+Profit.
According to these relations.
Production cost = PRIME COST+ FACTORY EXPENSES+Administrative expenses.
[B] should be correct.
(1)
Lucky said:
9 years ago
Product cost refers to the costs used to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead = Product unit cost.
So, option "A" is perfect.
So, option "A" is perfect.
Engineer M.Hassan said:
9 years ago
Option B should be correct the correct answer.
SWETABH SUMAN said:
8 years ago
According to me, Answer B should be correct.
R Praveen said:
8 years ago
Production Line cost : Prime cost + factory overhead + Administrative Cost.
Production cost : Prime Cost+ Factory Overheads.
Hence Option A.
Production cost : Prime Cost+ Factory Overheads.
Hence Option A.
Abed Al Elah Al Balasmeh said:
8 years ago
A is perfect option overhead include any cost links with production indirectly such as administration costs, distribution cos, advertising costs >>etc.
Sid said:
6 years ago
B is the correct answer.
Vinay said:
5 years ago
Factory overheads is right. I agree with the given answer.
Rajkotha said:
4 years ago
Option B is the correct answer.
L Rajendra said:
4 years ago
B is correct.
Production cost = prime cost+ administration overhead.
Factory cost = prime cost + fact overheads.
Production cost = prime cost+ administration overhead.
Factory cost = prime cost + fact overheads.
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