[Big Bad Bob]

On 05/09/11 21:36, flipper so wittily quipped:
but at the end of the day
if there are 200 man hours in a chinese amp, ( 5 men working for a
week ), the cost of wages is $128, and if materials in chinese prices
are also $128, then total cost of production = $256,and if you double
that for the profit made my whoever owns the chinese company, maybe
the Chinese Communist Party, then the export price might be $512.

All ridiculous assumptions, not to mention the cost of doing business
is more than simply COGS.

my point was that the design would determine how many man hours you
need. there are really a LOT of variables in the cost of manufacturing
something. mfg engineers get paid HUGE bucks to figure out inexpensive
ways of building something (without compromising quality even). But if
you can have it all done via automation, so much the better. Then the
assembly production costs can become "COGS" eh? Final assembly and test
would take very little time for a reasonably experienced tech.