ABSTRACT
Manufacturing costs are generally classified from the two standpoints: Morphological classification, Economical classification. Cost elements are accumulated in the process of completing a piece of product, which is the 'flow of costs'. To trace, record, and calculate the cost elements is costaccounting. From the manufacturing firm's standpoint selling price becomes the gross revenue after the sale of the product. Accurate cost estimation for producing a piece of product plays a role for capital budgeting. If the product is standardised, or nearly so, the product cost can be easily calculated based upon the standard cost. Simply it is the sum of the costs of the parts which comprise the product. Multiplying this sum by production volume generates the total cost for the product. In the process of producing the whole volume of the product, if the production lead time exceeds the due date, production is to be expedited, which raises the production cost.
