Manufacturing costs are the costs incurred in manufacturing a product. These costs include direct material costs, direct labor costs, and manufacturing overheads. Expenses are typically reported as separate line items on the income statement. These costs are borne by the company during the manufacturing process.
Average cost (also called unit cost) refers to the cost of producing one unit of the product. It is calculated by dividing the total cost (fixed cost + variable cost) by the total number of units produced. Businesses can use unit prices to price their products.
Total manufacturing cost shows how much money a company spent to produce inventory in a given time period. This includes a detailed account of overheads, materials used, labor costs, and other manufacturing costs that went into completing the product.
Learn more about Manufacturing costs here:
https://brainly.com/question/13767214
#SPJ4
