ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Taxes levied by the government or royalties owed by natural resource-extraction companies are also treated as production costs.

Detailed explanation-2: -Production costs may include things such as labor, raw materials, or consumable supplies. In economics, the cost of production is defined as the expenditures incurred to obtain the factors of production such as labor, land, and capital, that are needed in the production process of a product.

Detailed explanation-3: -Production cost factors typically include labor, raw materials, equipment, rent, and other supplies or overhead.

Detailed explanation-4: -It can include service costs, utility expenses, rent payments and equipment costs. Some common types of manufacturing costs include: Employee wages and salaries directly involved in producing products, such as quality assurance, equipment operators, industrial engineers and factory managers. Raw materials.