What are Solar Panels? A solar panel is a system of photovoltaic (PV) modules wired and mounted to harness light energy from sunlight. Converting the sunâs natural energy into electrical power, solar panels are a smart energy option for solar contractors, business owners, homeowners, and utility scale projects alike.
Factory cost refers to the total cost required to manufacture goods. This concept is the basis for several cost accounting analyses. Factory costs have traditionally been broken down into the following three categories of cost: Direct materials. This is the cost of those materials directly associated with the construction of goods. It can also include the cost of materials destroyed during the setup and testing of production equipment, as well as a normal amount of scrap.
To figure your total manufacturing cost per unit, divide your total costs by the total number of units produced. For example, say for the year your company made 1 million units and incurred production costs of $3 million. Divide your $3 million costs by the 1 million units to find your cost per unit: $3.