Term and Indirect Costs

Topics: Term, Cost, Economics Pages: 3 (532 words) Published: November 24, 2013
Manufacturing Process and Operations
A. How much will be done within the company?
1. How?
2. How much of the product will be developed by subcontracts? . What is the planned capacity for level of production?
1.In dollars?
2.In units?
3.How may this be expanded?
4.What are the production cycles?
F. What are the production costs at different volume levels (breakdown of fixed and variable costs) G. What are the plans for facility layout and equipment setup so production flows with minimum errors.

H. Will the plant be setup for process layout or production layout? I. Determine the order in which the job will be done at each workstation. . Separate the cost needed to produce each product by material and by labor. What are the indirect costs? (taxes, supplies, utilities, management, insurance, interest)

What is the break-even point?
What are other production control procedures?
What are the safety record and procedures?
What is the quality control system?
What are the inventory control considerations?
Do we implement fixed order or cycle order?
What is the shelf life of product?

Facilities and Equipment
B. What materials are required for production?
2. What are the most important materials?
C. Who are the sources for these materials?
1. Are any of these sources sole sourced?
2. Are there any backup vendors if suppliers become unavailable?
3. What are the lead times for the materials?
D. Are the production facilities leased and equipment leased or purchased?
1.What is the condition of the facilities and equipment?
2.Are there any liens on the property or equipment?
3. Will a title search be done for the property and equipment owned? Consider facility layout and equipment for the future expansion of company. J. Separate the cost needed to produce each product by material and by labor. What are the indirect costs? (taxes, supplies, utilities, management, insurance, interest)

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