Cost models for evaluating industrial investments
by Ernesto Newbery, Manuel A. Carrillo, Tarek M. Khalil
International Journal of Technology Management (IJTM), Vol. 3, No. 6, 1988

Abstract: Production cost structures within any manufacturing system vary from one branch of industry to another, and from one country to another. This is based on a number of factors including cost and availability of natural resources, know-how and technology. It would be useful to analyse the whole spectrum of industry to provide benchmark indices pertaining to the cost structure of each of these industries. These indices in the form of elemental cost ratios to total sales, can be helpful in comparing the behaviour of different types of industry within a country and across countries. Such an approach would open the opportunity for the development of a standard methodology that can be used as a guide for industrial development, introducing new technologies and/or expanding operations internationally. This paper makes an attempt in that direction by developing a computerized model utilizing US industries' data as a basis.

Online publication date: Tue, 26-May-2009

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