Production cost is the combined total cost of raw material and direct labor costs and burden incurred in production. As the resources used to manufacture the sprocket rim, the production cost involves several elements including the purchase of raw machinery, wages of labor, interest on capital, and insurance charges. The cost of the production is categorized into two parts: fixed cost and variable cost. At present, most manufacturers in the market reduce the manufacturing cost for obtaining increased profits by strictly controlling the variable cost.
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