Unit level costs
Unit level costs arise from activities that are performed at least once for each unit of product. For example, machining a surface, drilling a hole, or attaching a subassembly must be done for eacht and every unit produced. These costs include direct labor and material, machine costs, and direct energy costs.
Variables: direct labor costs, direct material costs, direct machine costs, direct energy costs
Calculation: Sum of these costs
Measured as: Value ($/€),
Interpretation of results: Lower is better
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