Identification should include
- direct factors
- inventory
- materials
- waste management and disposal
- compliance with industry regulations (e.g. labor, labeling, safety)
- indirect factors
- salaries and benefits
- utilities
- space requirements
- equipment (e.g., purchase, maintenance, and repair)
- distribution
- miscellaneous overhead expenses (e.g., depreciation of equipment, security, rent, utilities).
Process/Skill Questions:
Thinking
- How can understanding the factors that affect manufacturing/production cost increase profits?
- What ethical issues need to be considered when determining cost?
Communication
- What is the importance of communication in the areas of safety?
- How can communication affect overall profit?
Leadership
- How does teamwork affect manufacturing/production costs?
- How can industry leaders ensure that manufacturing/production of apparel is done in an ethical manner?
Management
- What resources are available to help manufacturing/production managers make cost decisions?
- What roles can managers play in cost control?