International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
Printed Journal   |   Refereed Journal   |   Peer Reviewed Journal
International Journal of Financial Management and Economics
Vol. 1, Issue 1 (2018)

Study on concept of cost of production: It’s implication in management decision


Dr. Mahesh Panda

Purpose of this study is to understand the concept of Cost of production and how its graph moves during the economic life of product/business. Understand the concept of various costs which helps management in making their decisions.
Cost of production is the cost incurred by business for manufacturing goods or for providing services. It is majorly categorised in two major categories variable cost and fixed cost. Cost of production can be understood, analysed and used for decision making in following terms:
1. Fixed Cost
2. Variable Cost
3. Total Cost
4. Average Variable Cost
5. Average Fixed Cost
6. Average Total Cost
7. Marginal cost
Management use cost of production in making following and various other decision:
1. Product selection for production
2. Product Pricing
3. To review past decisions
4. To correct future decisions
5.Costing Cutting
Pages : 05-11 | 694 Views | 348 Downloads
How to cite this article:
Dr. Mahesh Panda. Study on concept of cost of production: It’s implication in management decision. Int J Finance Manage Econ 2018;1(1):05-11.
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International Journal of Financial Management and Economics