microeconomics - costs

Welcome to the presentation

GROUP: iMarket

Production costs

COSTS

All costs

Manufacturing (Product) Costs

Direct materials

Direct Labour

Manufacturing Overhead

Non- Manufactuing (Period) Costs

Selling Expenses Administrative

Cost

• Cost is the value of everything a seller must give up to produce a good (i.e., opportunity cost).

• Includes cost of all resources used to produce good, including value of the seller’s time.

• Costs may be classified as manufacturing costs and non-manufacturing costs.

I. Manufacturing costs The sum of costs of all resources consumed in

the process of making a product. The manufacturing cost is classified into three categories:

1. Direct materials cost

2. Direct labor cost

3. Manufacturing overhead

1. Direct materials costDirect materials are the raw materials that become a part of the finished product. Manufacturing adds value to raw materials by applying a chain of operations to maintain a deliverable product. There are many operations that can be applied to raw materials such as welding, cutting and painting.

I. Manufacturing costs

2. Direct labor costThe direct labor cost is the cost of workers who can be easily identified with the unit of production. Types of labor who are considered to be part of the direct labor cost are the assembly workers on an assembly line.


3. Manufacturing overheadManufacturing overhead is any manufacturing cost that is neither direct materials cost nor direct labor cost. Manufacturing overhead includes all charges that provide support to manufacturing.


II. Non-manufacturing costs• Non-manufacturing Costs are those costs that

are not directly incurred in manufacturing a product. Examples of such costs are salary of sales personnel and advertisting expenses.

• Generally non-manufacturing costs are further classified into two categories:

Selling and distribution Costs Administratives Costs

PRODUCTION COSTSNGHIEPPHU GARMENT

111 Ly Thanh Tong, Tan Thoi Hoa Ward, Tan Phu District Tel: 3.8464843 _ FAX: 3.8460958

Costs of making a shirt

COSTS OF MAKING A SHIRTNorm Unit price Total

1. Factor production costs

Raw materialsFabric 1.5 50000 75000

MaterialsScissors 0.3 20000 6000

Thread 150 10000 1.500

Coat button 14 25 350

Label 2 500 1000

Packing 1 2000 2000

Barrel 0.1 15000 1500

2. Direct labor expenses

Wages 1 1500 15000

Insurance & union fees

24% 15000 15000

Norm Unit price Total

3. Overall production costs

Wages for each parts: technique, Producton management,…

1 4000 4000

Depreciation fixed assets: factory, equiment,…

1 6000 6000

Instrument 1 2000 2000

Electronic cash, water casg 1 1000 1000

Money outsourced for production

Wiiden spade wages 1 1500 1500

Other costs: workwear 1 1000 1000

TOTAL PRODUCTION COSTS 121 450

Details of Costs TableOrdinal Date Case Seller’s name Interpret Costs

1 31/03/2014 0001006 Mộc Thủy sticking-plaster limited liability company

Sticking-plaster 1.023.000

2 2/4/2014 0000051 Tân Phú Minh holdings multinational company

Raw 1.472.725

3 15/4/2014 0000403 Hồng Phát packing private company

Carton packing 5.114.340

4 28/4/2014 0001300 Thuận Vinh limited liability company

Thread 7.326.000

5 16/4/2014 0002356 T&M Thread holdings company Thread 2.288.000





10 10/4/2014 0005066 Sơng Hồng limited liability company

Export/Import Cost

2.607.688

Ordinal Date Case Seller’s name Interpret Costs

11 11/4/2014 0003767 Phương limited liability company

Export/Import Cost

4.829.718

12 24/4/2014 0014357 Phúc Thịnh limited liability company

Export/Import Cost

2.123.000

13 29/4/2014 0001392 Thorese Vinama limited liability company

Export/Import Cost

31.672.500

14 29/4/2014 0001396 Thorese Vinama limited liability company

Export/Import Cost

2.996.631





19 12/5/2014 0002664 T&M Thread holdings company Thread 886.600

20 13/5/2014 0000922 International limited liability company

Export/Import Cost

1.626.240

21 14/5/2014 0001092 Mộc Thủy sticking-plaster limited liability company

Sticking-plaster 1.267.200

Ordinal Date Case Seller’s name Interpret Costs

22 16/5/2014 0004025 Phương limited liability company

Export/Import Cost

1.700.353

23 20/5/2014 0014901 Phúc Thịnh limited liability company

Export/Import Cost

2.038.300

24 20/5/2014 0012267 F.D.I limited liability company Export/Import Cost

4.468.992

25 23/5/2014 0000416 Hồng Phát packing private company

Carton packing 18.098.718

26 28/5/2014 0000468 Tân Phú Minh holdings multinational company

Raw 892.458

27 29/5/2014 0001329 Thuận Vinh limited liability company

Thread 17.704.500

28 30/5/2014 0000024 Huỳnh Tuấn limited liability company

Coat button 17.607.110

29 31/5/2014 0002621 Khanh Việt private company Bag 9.129.890

30 4/6/2014 0018182 Yang Ming limited liability company

Export/Import Cost

3.115.789

PAYMENT 157.492.402

1. Nguyễn Tuấn Anh Thy2. Trần Lê Khánh Ngọc 3. Vàng Ngọc Thanh4. Trần Nữ Hoàng5. Trần Thị Ngọc Tuyền6. Quyền Thị Thùy Giang7. Lưu Hoàng Vân Anh

microeconomics - costs

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