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Quality, Tolerance and Costs

Quick questions on Direct and indirect costs - CCEA GCSE Engineering and Manufacturing

4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is calculating the cost of a product?
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The total cost of a batch is: $total cost=total variable (direct) cost+fixed costs.\text{total cost} = \text{total variable (direct) cost} + \text{fixed costs}.Andthecostperitemis: And the cost per item is: cost per item=total costnumber made.\text{cost per item} = \frac{\text{total cost}}{\text{number made}}.$
What is q1?
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Give one example of a direct cost and one example of an indirect cost. [2 marks]
What is q2?
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Materials cost 3 pounds and labour 2 pounds per item; fixed costs are 500 pounds for 100 items. Find the total cost. [2 marks]
What is q3?
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Why does the cost per item fall as more are made? [1 mark]

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