This definition refers to the business processes that involve transformation, or more generally 'production'.

Capital land and resources are all examples of this type of costs.

These are mass produced goods usually on an assembly line.

This definition is the conversion of inputs (resources) into outputs (goods and services).

Machinery maintenance, electricity, product design are all examples of this type of costs.

These are goods that are varied according to the needs of customers.

This definition refers t the creation of extra or added value as inputs are transformed into outputs.

Sampling and inspection of goods and processes and machining errors, injury and machine downtime are all examples of these costs.

These are tangible, tend to be standardised,they can be owned and transfered between people and value can be easily ascertained through costing outputs.

This definition in operations refers to the all key areas and it involves all managers contributing to the strategic direction or strategic plan of the business.

This involves aiming to have the lowest costs or to be the most price competitive in the market.

These are intangible, exist only while being performed, are generally customised but can be standardised, They are hard to value sometimes.

This refers to the cost advantages that can be created by an increase in scale of business operations.

Casual employees, subcontractors, overtime and rostering are all examples of these types of costs.

These are goods that can be processed more than once.