Cost of Production & Evolution of Secondary Information

Given the estimated production, the cost of production may be worked out. The major components of cost of production:

1. Materials cost: The mainly significant part of cost, the material cost comprises the cost of raw materials, chemicals, components and consumable stores necessary invention.  

2. Utilities cost: Utilities consist of power, water and Fuel

3. Labour cost: Labour cost is the all the manpower employed in the factory. Labour cost naturally is function of number of employees and the rate of remuneration

4. Factory overhead cost : The expenses on repairs and maintenance, rent, taxes, insurance on factory assets, and so on are collectively referred to as factory overheads

Evolution of secondary information

the market analyst should seek to know:

1. who gathered the information?

2. when was the information gathered? When was it published?

3. How representative was the period for which the information was gathered?

4. What was the target population?

5. How was the sample chosen?

6. How representative was the sample? How satisfactory was the process of information gathering? 7. what was the degree of misrepresentation by respondents?