Investments glossary

Production Costs

Production or product costs refer to the costs incurred by a business from manufacturing a product or providing a service. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. Product costs may also include those incurred as part of the delivery of a service to a customer. Taxes levied by the government or royalties owed by natural resource-extraction companies also are treated as production costs.

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