Prototype part cost = variable. As we buy more volume, the cost per piece is lower.

Prototype tooling cost = fixed

Prototype build labor = variable. Depending on the length of a build, the labor cost will differ.

Design labor cost (time required to produce a design) = variable. Depending on number of hours needed to finish a design, the overall cost per design will differ.

Knowing or estimating these project costs is essential to determine our yearly expense budgets. These budgets are tracked on a monthly basis and reported to management if we are over or under budget and how is the budget trending (up, down or neutral).

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