In a company manufacturing and selling plastic molded articles, it is necessary to carry out a careful analysis of what expenses are actually being incurred where and for what item and to be of use to the management. This kind of analysis is called cost analysis. If a cost analysis is made, it can be understood that the following items will have to be accounted as the production expenses of the molded artilcles.

Cost analysis of plastic molded items:

Material expenses
Direct overhead (workers)
Indirect overhead (office workers, managers)
Insurance
Mold depreciation
Machine depreciation (molding machine)
Machine depreciation (peripheral equipment)
Maintenance expenses
Building depreciation
Electricity expenses
Water expenses
Defect countermeasure expenses
Inspection expenses
Packaging expenses
Freight expenses

In addition, the following expenses are accounted in some cases.

Secondary processing expenses
Assembly expenses
Technology license fees (patent utilization royalties, etc.)

Further, the sales price will be the profit added to these expenses.
The ratio (%) of profits to the sales price is called the gross profit, and the ratio obtained after deducting taxes from the gross profit is called the net profit ratio (%).
Being able to produce a large number of high profit ratio molded items is the path to good management.