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Aggregate Units of Production (4)Regular time costs:Involve the cost of producing one unit of output during regular working hours; .Actual payroll cost of regular employees working on regular time; Direct and indirect costs of materials; .Other manufacturing expense; (5)Overtime and subcontracting costs:Costs of production units not produced on regular time; Overtime-production by regular-time employees beyond work day; Subtracting-the production of items by an outside supplier; .Assumed to be linear; (6)Idle time costs:Underutilization of workforce; .In most contexts,the idle time cost is zero; .Idle time may have other consequences for the firm,e.g.if the aggregate units are input to another process,idle time on the line could result in higher costs to subsequent processes.Aggregate Units of Production (4) Regular time costs: Involve the cost of producing one unit of output during regular working hours; •Actual payroll cost of regular employees working on regular time; •Direct and indirect costs of materials; •Other manufacturing expense; (5) Overtime and subcontracting costs: Costs of production units not produced on regular time; •Overtime-production by regular-time employees beyond work day; •Subtracting-the production of items by an outside supplier; •Assumed to be linear; (6) Idle time costs: Underutilization of workforce; •In most contexts, the idle time cost is zero; •Idle time may have other consequences for the firm, e.g. if the aggregate units are input to another process, idle time on the line could result in higher costs to subsequent processes
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