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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
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The direct labour cost is the cost of workers who can be easily identified with the unit of production. Types of labour who are considered to be part of the direct labour cost are the assembly workers on an
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Manufacturing overhead is any manufacturing cost that is neither direct materials cost nor direct labour cost. Manufacturing overhead includes all charges that provide support to manufacturing.
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is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories:
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Indirect materials cost: Indirect materials cost is the cost associated with consumables, such as lubricants,
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Indirect labour cost: The indirect labour cost is the cost associated with workers, such as supervisors and
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Other indirect manufacturing cost: includes machine depreciation,
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team, who are not directly involved in the production.
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289:Lanen, W. N., Anderson, S., Maher, M. W. (2008).
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135:total delivery cost
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