production costs
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production costs
The total costs incurred in manufacturing a product or providing a service.
Durch den Einsatz neuer Maschinen konnten die Produktionskosten deutlich gesenkt werden.
By using new machines, the production costs were significantly reduced.
The word is made up of 'die Produktion' (production), the linking element '-s-', and 'die Kosten' (costs). So it literally means 'the costs of production'.
Die Firma analysiert ihre Produktionskosten, um wettbewerbsfähig zu bleiben.
The company analyzes its production costs in order to remain competitive.
'Produktionskosten' (production costs) is used almost exclusively in the plural, since it usually refers to a sum of different types of costs. The singular form 'die Produktionskoste' is very unusual.
Die hohen Energiepreise treiben die Produktionskosten in die Höhe.
High energy prices are driving up production costs.
Common verbs used with 'Produktionskosten' (production costs) are 'senken' (to lower), 'reduzieren' (to reduce), 'erhöhen' (to increase), 'berechnen' (to calculate), and 'decken' (to cover).
Das Unternehmen hofft, die Produktionskosten um zehn Prozent zu senken.
The company hopes to lower production costs by ten percent.
operating costs / service charges
'die Betriebskosten' and 'die Produktionskosten' both often appear in companies and financial planning. 'Betriebskosten' are the ongoing costs that allow a company to operate at all, for example rent, staff, or energy. 'Produktionskosten' arise directly in the manufacture of a product or the provision of a service. They can be confused because both types of costs occur in a company. As a simple guide: 'Betriebskosten' keep the business running, while 'Produktionskosten' belong to production.
Die Produktionskosten steigen, wenn das Material teurer wird.
Production costs rise when the material becomes more expensive.
Die Firma muss ihre Betriebskosten senken, weil die Miete teurer geworden ist.
The company has to reduce its operating costs because the rent has become more expensive.