It has a lower opportunity cost for production of that good.
Cost of cocoa beans Scale of production Cost to convert to chocolate Cost of selling and distribution
At zero production variable cost will be zero because variable cost is the cost occured for producing a product but their will be some fixed cost.
Factory overheads are incurred only and only due to production of the goods. That is why the factory overhead cost is applied to production.
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prostaglandins
cost of production formula
production cost, selling cost and sundry cost
cost of production is the amout of money spend on the production of a perticular comodites.
waiting for money from producers
It has a lower opportunity cost for production of that good.
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you product the cost
Because the production manager's salary remains the same, regardless of the production level, this salary is a fixed cost, not a variable cost.
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
suggestion on cost saving or production improvement initiatives
Cost of cocoa beans Scale of production Cost to convert to chocolate Cost of selling and distribution