production formulas Flashcards
1
Q
prime costs
A
prime costs = direct labour costs + direct material costs
2
Q
factory over head costs
A
factory over head costs = indirect labour costs + indirect material costs +depreciation + insurance +rent etc
3
Q
total costs of production
A
total costs of production= direct labour + direct material + factory over heads
4
Q
total fixed cost
A
total fixed cost = factory overheads + admistration costs
5
Q
total variable costs
A
total variable costs = prime costs + selling and distrabution costs
