Factors that influence Manufacturing Costs and Procedures for Cost Reduction

Abstract

In cost accounting, manufacturing costs are determined by adding the material and production costs (part production and assembly). Manufacturing costs are a portion of the total costs. Thus, the measures for cost reduction can be divided accordingly into three groups and each can be tackled in a similar way (Fig. 7.1-2).

This chapter reviews a number of other factors, according to product and process features. The examples herein can stimulate in developing their own individual procedures. This, of course, must be adapted in each case to the given task.