Determinants Of Cost

The determinants of cost varies so much

from firm to firm and from problem to
problem that no general set is applicable
to all. Nevertheless, there are a few
determinants which are important enough
in modern manufacturing enterprises so as
to deserve special mention.
 Determinant – 1
Rate of output (i.e., utilization of fixed plant)
 Determinant – 2
Size of plant
 Determinant – 3
Prices of input factors (materials and labour)
 
 Determinant – 4
Technology
 
 Determinant – 5
Size of lot
 Determinant – 6
Stability of output
 
 Determinant – 7
Efficiency (of management as well as labour)