The sum of all costs incurred in the production of goods or the provision of services. This includes material costs, manufacturing costs, and other direct costs.
example
Durch den Einsatz neuer Maschinen konnten die Herstellungskosten pro Einheit gesenkt werden.
By using new machines, the production costs per unit were reduced.
Usage tips
Word composition
This word is composed of 'Herstellung' (production) and 'Kosten' (costs). The 's' in the middle is a linking element that connects the two words.
EXAMPLE
Die Herstellungskosten für dieses Produkt sind sehr hoch.
The production costs for this product are very high.
Usually plural
Since 'Kosten' (costs) usually refers to a sum of various expenses, 'Herstellungskosten' (production costs) is almost always used in the plural.
EXAMPLE
Das Unternehmen sucht nach Wegen, um die Herstellungskosten zu optimieren.
The company is looking for ways to optimize production costs.
Typical verbs
Common verbs used with production costs are 'senken' (to lower), 'reduzieren' (to reduce), 'berechnen' (to calculate), and 'decken' (to cover). They describe what one does with the costs.
EXAMPLE
Mit dem Verkaufspreis müssen mindestens die Herstellungskosten gedeckt werden.
The selling price must at least cover the production costs.
Register
'Herstellungskosten' (production costs) is a technical term from business and accounting. It is mainly used in business or academic contexts.
EXAMPLE
Im Businessplan müssen die erwarteten Herstellungskosten genau aufgeführt werden.
The expected production costs must be listed precisely in the business plan.
Compare with
near_synonym · confusable
Herstellungskosten vs Baukosten
construction costs
'Baukosten' and 'Herstellungskosten' both refer to money spent to create something. The most important difference is the area of use. 'Baukosten' is used for buildings or other structures, for example a house, a bridge, or a hall. 'Herstellungskosten' is used more generally for the production of goods or services. The words can be confused because building is also a kind of producing. Still, for a building, 'Baukosten' sounds more precise; for a product from a factory, 'Herstellungskosten' is more likely.
Herstellungskosten
Die Firma will die Herstellungskosten senken, ohne die Qualität des Fahrrads zu verschlechtern.
The company wants to lower production costs without reducing the quality of the bicycle.
Baukosten
Wegen der teuren Materialien sind die Baukosten für das neue Haus stark gestiegen.
Because of the expensive materials, the construction costs for the new house have risen sharply.