| # Added costs The added value/costs represent the actual increase of utility from the viewpoint of the customer as a part is transformed from raw materials to finished inventory. The distinction between added and non-added is used to determine the surcharge amount. For new purchased items: The added costs are the material costs plus surcharges. For manufactured items: The added costs are the operations costs plus surcharges. Materials (including the item receipt surcharges and warehouse surcharges) are considered as non-added cost. For items transferred between warehouses: The added costs are the warehouse surcharges. Related topics Cost components in Manufacturing |