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  2. Economic order quantity - Wikipedia

    en.wikipedia.org/wiki/Economic_order_quantity

    Incremental unit discount: Units 1–100 cost $30 each; Units 101–199 cost $28 each; Units 200 and up cost $26 each. So when 150 units are ordered, the total cost is $30*100 + $28*50. All units discount: an order of 1–1000 units costs $50 each; an order of 1001–5000 units costs $45 each; an order of more than 5000 units costs $40 each. So ...

  3. Direct labor cost - Wikipedia

    en.wikipedia.org/wiki/Direct_labor_cost

    In the direct labor cost we need to have the job time and wage we will pay it to the worker to calculate the direct labor cost as in this formulation: [1] - = Depending on the context, there are various methods to calculate personnel costs, such as on an hourly or daily basis.

  4. Average cost - Wikipedia

    en.wikipedia.org/wiki/Average_cost

    In economics, average cost (AC) or unit cost is equal to total cost (TC) divided by the number of units of a good produced (the output Q): A C = T C Q . {\displaystyle AC={\frac {TC}{Q}}.} Average cost is an important factor in determining how businesses will choose to price their products.

  5. Unit cost - Wikipedia

    en.wikipedia.org/wiki/Unit_cost

    The unit cost is the price incurred by a company to produce, store and sell one unit of a particular product. Unit costs include all fixed costs and all variable costs involved in production. Cost unit is a form of measurement of volume of production or service.

  6. Cost-plus pricing - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_pricing

    Markup price = (unit cost * markup percentage) Markup price = $450 * 0.12 Markup price = $54 Sales Price = unit cost + markup price. Sales Price= $450 + $54 Sales Price = $504 Ultimately, the $54 markup price is the shop's margin of profit. Cost-plus pricing is common and there are many examples where the margin is transparent to buyers. [4]

  7. Economic batch quantity - Wikipedia

    en.wikipedia.org/wiki/Economic_batch_quantity

    If is the cost of setting up a batch, is the annual demand, is the daily rate at which inventory is demanded, is the inventory holding cost per unit per annum, and is the rate of production per annum, the total cost function () is calculated as follows: [13]

  8. Cost breakdown analysis - Wikipedia

    en.wikipedia.org/wiki/Cost_breakdown_analysis

    Labor costs are direct costs, that is, they can be identified among the total cost and assigned to a certain cost objective. [1] Labor costs are defined by categories (e.g. service labor or manufacturing labor), the attribution of a labor rate for each category, and a certain number of labor hours. [1]

  9. Pre-determined overhead rate - Wikipedia

    en.wikipedia.org/wiki/Pre-determined_overhead_rate

    Common activity bases used in the calculation include direct labor costs, direct labor hours, or machine hours. This is related to an activity rate which is a similar calculation used in Activity-based costing. A pre-determined overhead rate is normally the term when using a single, plant-wide base to calculate and apply overhead.