Costs, administration manufacturing

Cost accounting is the name traditionally given to accounting for manufacturing costs. The manufacturing cost of a product is traditionally taken as the sum of the costs for (1) direct materials, (2) direct labor, (3) manufacturing overheads, and (4) administration, selhng, and finance. 

The objectives of formulation and analytical scientists are to develop new drug products for human use that are chemically and physically stable, bioavailable upon administration, manufacturable, cost-effective, elegant, and marketable. 

The cost of manufacturing a product includes the manufacturing cost, overhead, and general expenses. Manufacturing cost includes direct expenses and consists of the cost of raw material, containers, operator and labor costs, and utilities (like electricity, steam, water, fuel, etc.). This cost will depend on the production quantity. In contrast, overhead cost will be constant irrespective of the quantity of material that is being manufactured. Overhead cost may include expenses such as employee salaries, medical services, administration, insurance, depreciation, taxes, etc. General expenses consist of freight and delivery, sales, and R D expenses. 

The cost of manufacturing thermoformed, polystyrene foam sheet parts is less dependent on raw material cost than other extrusion processes. This is largely due to the combined effects of additional energy costs required to operate two extruders, heat removal requirements in the secondary extruder, cost of pelletizing (densifying) regrind and the relatively low output of the process for the equipment scale and cost. Typical cost factors for the manufacture of thermoformed polystyrene foam sheet products include raw materials 35%, labor 27%, sales and administration 16%, depreciation 8%, utilities 7% and other 7%. 

Metcalf s.Cost of Manufactures—And the Administration of Workshops, Public... 

Tablets remain one of the most popular dosage forms for consumers. Convenience, portability, and ease of administration are a few of the factors that drive the market for tablets. Pharmaceutical production also favors tablets owing to the low cost of manufacture compared to other dosage forms. To reduce associated costs and balance the limited drug substance available, tablet development usually begins at a small scale. Manual equipment (i.e., Carver press) or a singlestation tablet machine (i.e., F-Press, EKO) may be used to manufacture tablets one at a time. Small-scale rotary tablet presses (e.g., B3B, BetaPress) are usually used for early clinical trials and formulation optimization prior to scaling up onto a production machine (e.g., Fette 2090 or 3090).

Sales revenues from new products must be reduced by the cash outlays required to make and sell them. Accurate measurement of product-specific costs of manufacture, marketing, distribution, and administration is difficult for multiproduct companies, and publicly available financial statements offer only rough estimates of the magnitude of these costs. 

Eixed costs include corporate overhead and administration costs as well as those plant-related costs that do not vary with production and contribute 5 to 30% of the total manufacturing cost. 

Total Capital Cost The installed cost of the fixed-capital investment Cpc is obviously an essential item which must be forecast before an investment decision can be made. It forms pai4 of the total capital investment Cfc, defined by Eq. (9-14). The fixed-capital investment is usually regarded as the capital needed to provide all the depreciable facihties. It is sometimes divided into two classes by defining battery limits and auxiliaiy facilities for the project. The boundary for batteiy limits includes all manufacturing equipment but excludes administrative offices, storage areas, utihties, and other essential and nonessential auxihaiy facilities. 

Each company with sales to the NHS of more than 1 million per annum has to supply financial information and those with sales of between 1 million and 25 million will have to supply full audited accounts. Companies with NHS sales greater than 25 million will have to submit a full annual financial return (APR). Products with NHS sales of greater than 100 000 and 500 000 will have to be specifically identified. These annual returns cover the overall sales to the NHS and the costs incurred, such as research and development expenditure, manufacturing costs, general administrative costs, promotional expenditure and capital employed. (Details of specific produce costs or sales are not required.)... 

The EPA requires companies to submit premanufacturing notices (PMNs) 90 days before a chemical s manufacture is started. EPA may stop the manufacture or prohibit certain uses. The PMN must include detailed information. They were initiated in 1979. Some 1,100 were filed from 1979-1981 and the number now averages 700 new PMNs per year. About 1-7% are chemicals of concern. The PMN system has been criticized by many in the industry. There has been a 54% decline in new chemical introductions since PMNs have been initiated. Eventually it may concentrate new product development into large companies that can afford the extra testing and administrative costs. 

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