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 Full Production Stage in the DecisionCrafter NPD.xls menu. Click on Sales and variable production costs. This will take you to the Commercialization Stage menu. Click on the appropriate year(s) in the Commercialization stage menu and enter the variable production costs for each year of the commercialization stage. Data input cells are shown below and have been shaded to help you identify them.  

If you have chosen to license the manufacturing and distribution to an outside firm set the variable costs to zero.

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Manufacturing process
Operations

Variable Production Costs