Costs of Production (Grade 11 NSC Matric Accounting): Flashcards

All expenses directly related to producing goods in a factory

Direct materials and direct labour

Materials that become part of the final product

Wages paid to workers who physically make the product

All indirect costs of running a factory

Change in direct proportion to production level

Remain constant regardless of production levels

Expenses for running the office and managing the business

Incurred after production is complete

Wages, UIF, pension fund, and medical aid contributions