Understanding Production Costs

💡 Cost is everything that will generate income and represent an investment.

💲 Cost should not be confused with expenses as expenses decrease our utility and can even cause losses.

🔧 Cost of production includes the price of purchase and the manufacturing expenses.

📝 Costos de producción se dividen en materiales directos e indirectos, y mano de obra directa e indirecta.

💰 Otros gastos de fabricación incluyen útiles de aseo, papelería de oficina, combustible, alquileres e impuestos.

🔢 El costo unitario de producción es un factor clave en la determinación del precio de un producto.

💰 The cost of a particular item includes sales expenses, such as advertising and salaries.

📚 Administration expenses are the costs for managing the company, including salaries, rent, and utilities.

📊 Financial expenses refer to the operations conducted to stimulate the company's activities.