manufacturing cost

Definition

The total cost of manufacturing a product, including the direct labor costs, direct material costs, overhead costs, and any other expenses associated with production. Manufacturing costs are generally separated from other expenses in order to gauge the efficiency and productivity of the company.

Use manufacturing cost in a sentence

You need to figure out what the total manufacturing cost will be and then decide how much to sell the product for.

​ Was this Helpful? YES  NO 7 people found this helpful.

When considering what price to charge for a retail item, a store must consider the manufacturing cost in order to determine what cost should be charged to the consumer in order to maximize the retail profit.

​ Was this Helpful? YES  NO 11 people found this helpful.

When my company wanted to purchase a new factory in Singapore, my boss sent me over to evaluate the factory and provide him with a direct analysis of the manufacturing cost associated with production there.

​ Was this Helpful? YES  NO 1 person found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
process costing manufacturing overhead