Reviewed by Amy Drury Fact checked by Yarilet Perez Production Costs vs. Manufacturing Costs: An Overview Production costs reflect all of the expenses associated with a company conducting its business ...

Jonathan Ponciano is a financial journalist with nearly a decade of experience covering markets, technology, and entrepreneurship. Suzanne is a content marketer, writer, and fact-checker.

For decades, test was limited to a flat 2% of total manufacturing cost, a formula developed prior to the turn of the Millennium after chipmakers and foundries saw the trajectory for rising test costs.