The Concept of Production Costs and its Composition

Abstract

This article put forward ideas such as the concept of economic cost, the classification of costs to be made on the use of resources, the use of two different approaches – classical and neoclassical or modern concepts-in the research of production costs. Enterprise production costs include raw materials, basic and auxiliary materials, fuel and energy costs, fixed capital depreciation, wages and social security deductions, interest payments and other costs.