The production costs of a company is composed of the direct and indirect loads of the production. The production costs exploit the economic Compétitivité and the survival of the companies vis-a-vis their competitors.

Direct loads

A direct load (variable or fixes) is a load having an immediate bond with the cost of purchase or the production costs or cost price of a good (purchase of matter, matter consumption, labor directly concerned with the production…). This load is easily affected at a precise cost.

Indirect loads

An indirect load (variable or fixes) is a load which does not have an immediate and obvious bond with the production costs of a good (work of the administrative service which is distributed between the various produced goods, lighting of the workshop where various goods are produced…). An indirect load requires a treatment (distribution) to be charged to a cost.

Other distributions

Generally, one distributes the production costs between cost of the Capital and Labor costs.

See too

• Factors of production
• Labor costs
• methods of calculating of the production costs

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