↵When determining the cost of an item (inorder to sell it), the cost of materials, labour (employee wages) and overhead (repair and mantenance of equipment, utlity bills....) and then a profit margin is added. Historically this was accepted practice. Today, more anr more, companies are realizing there are other, hidden costs the need to be accouted for -
employee health benefits
This is often referred to as the hidden or real costs of manufacturing.
It costs to extract raw materials -
It costs to produce finished products. Some of theses costs are not readilly apparent