Manufacturing costs are not always truly evident

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
  • environmental pollution
  • energy costs
  • 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