Manufacturing Costs Paper Sample

Published: 2022-09-07
 Manufacturing Costs Paper Sample
Type of paper:  Report
Categories:  Accounting Financial management
Pages: 2
Wordcount: 465 words
4 min read

The Proprietary Information

The proprietary information consists of a direct material, which the company owns them, and they make the final product. Besides, direct labor also forms proprietary as the organization traces labor to the individual's production unit. More so, direct costs are incurred directly by the company; hence, they can be considered proprietary (Edspira, 2018). Besides, profit or fee is the award received by an organization thus, forms part of ownership elements that the company assets.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Direct or Indirect Cost Elements

Direct cost elements, also referred to as cost object involves a high probability of being traced directly to a specific purpose such as a good or service. For instance, the company's raw materials like nails, furniture or vanish being put to the productivity of the organization such as making furniture can be traced easily (Edspira, 2018). Indirect cost elements stay with the company with little probability of tracing to a particular good or service. Furthermore, they affect the entire firm and not tailored to single objects (Mursau, 2018). For example, depreciation of the company and the accounting services, which affects the organization as a whole.

Classification of Material Cost

Material cost is classified differently since it implies to amount of money required for the production of goods or services. A good example consists of the budgetary money for a specific service or product (Mursau, 2018). Conversely, cost elements are resource costs that the activity consumes. Material cost forms part of the total cost.

Engine Tracking

There should be expectations for the contractors to track engine block as nuts and bolts because the availability of tools procure goods, but does not guarantee for quality work. Above all, there is the establishment of expectations of the direct cost of hard material, cost of hard labor and manufacturing overhead. The combination of it establishes the value of goods for a tiered manufacturing program (Baumers, 2016).

Agreement to the Statement

I agree with this statement because knowledge of the available assets, specifically the tools, in an organization grants an effective estimation of the value on goods and services. Furthermore, for proper acquisition of goods and services, there must be proper knowledge of how the process of manufacturing is done. Besides, an understanding of the direct cost material, labor and cost of goods is key to account and negotiation of goods and services.


Baumers, M., Dickens, P., Tuck, C., & Hague, R. (2016). The cost of additive manufacturing: machine productivity, economies of scale and technology-push. Technological Forecasting and Social Change, 102, 193-201. doi:10.1016/j.techfore.2015.02.015

Edspira, (2018). 3 Types of Manufacturing Costs (Direct Materials, Direct Labor, Manufacturing Overhead). Retrieved from

Mursau, A. (2018). Master Budget (Cost Of Goods Sold Budget Setup & Calculations, Explained Thru Detailed Example). Retrieved from

Cite this page

Manufacturing Costs Paper Sample. (2022, Sep 07). Retrieved from

Request Removal

If you are the original author of this essay and no longer wish to have it published on the SpeedyPaper website, please click below to request its removal:

Liked this essay sample but need an original one?

Hire a professional with VAST experience!

24/7 online support

NO plagiarism