Cost factor
In cost theory - a branch of production and cost theory - cost influencing factors (also cost determining factors ) are factors that influence the level of costs . They can only be partially influenced by the company itself ( data parameters ). For example, prices are generally dictated by the market , but can also be negotiated individually.
Classification
Erich Gutenberg divided the factors into the main cost influencing factors and others.
Main cost influencing factors
- Company size : This includes all production possibilities, such as machines and land. They cannot be changed in the short term, but not in the long term.
- Production program : the number and quantity of different products.
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Production process : is divided into three areas
- Degree of automation
- Production type : workshop production or flow production
- Production type : single, series or mass production
- Factor qualities : The properties of the factors of production . In particular, they have an impact on the production coefficients .
- Factor prices : Since the costs are the product of price and quantity, the price has a directly proportional influence on the costs.
- Employment : The amount of products created.
Further cost influencing factors
- Sales area : Here the sales policy instruments influence the level of costs.
- Research and development : In particular, improving the quality of production processes has an impact on factor consumption.
- Finance : Ifoutdated operating resources have to be useddue to a lack of capital , this has an impact on production costs.
literature
- Erich Gutenberg: Fundamentals of Business Administration: Volume 1 The Production 23rd Edition, Berlin, 1979.