As forging size increases, the share of material cost in the total cost also increases, but at a…
- May 26, 2021/ Finance
As forging
size increases, the share of material cost in the total cost also increases,
but at a lower rate. This occurs because (a) the incremental increase in die
cost for larger dies is relatively small, (b) the machinery and operations
involved are essentially the same regardless of forging size, and (c) the labor
involved per piece made is not that much higher.