What is the proportion of material cost to total production cost for a/c unit ?
The ratio of raw material costs to total cost of a/c unit depends on the different materials used by producers in their production. In manufacturing, material costing is a basic requirement for success. In order to be competitive and profitable, manufacturers must understand and control material costs. In the future economic conditions, many manufacturers are constantly looking for ways to improve material efficiency in order to maintain a surplus and competitive advantage by providing customers with maximum profits.
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