Variable Production Costs

Variable costs are those costs that vary with volume of production. In other words; more production more cost. The two variable labour costs that apply to manufacturing are labour cost and materials cost.

Goto the Prototype Stage in the DecisionCrafter NPD.xls menu.  Click on Sales and variable production costs. This will take you to the Prototype Stage menu. Click on YEAR 1 in the Prototype stage menu and enter the variable production costs for the first year of the pre-production stage. Data input cells are shown below and have been shaded to help you identify them.

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Manufacturing issues

Variable Production Costs