Dongfeng A60 Case Study

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In order to manufacture DongFeng A60, there are many cost components that we need to consider about it. For DongFeng A60, the main cost components that required is an engine. The engine used in manufacturing this car is Engine HR16DE 1.6L L4 16V DOHC. The engine is necessary to convert the fuel into mechanical energy so that the car is able to move along the way. If the car without an engine, then it will become useless. So, engine is a very essential cost components in manufacturing a car. Besides, tires is also necessary in manufacturing a car. The tires use in DongFeng A60 is 195/60 R16, it means that the characteristics of the tires is 195 width 60 sidewall height 16-inch rims. Tires used in car is to support the weight of the car and transmit …show more content…
The manufacturer will use more on white, grey, gold and black colour car paint because these are the colour that most of the customers will like it. Lubricants is put in components of the car to reduce the friction and wear from mechanical contact and heat. It also can use to clean the engine part of the car. Engineering and technology supervisor are the person working inside the company at a higher management positions. The job of engineering and technology supervisor is to control and maintain the quality of the car produced, they are also need to guide the manufacturing workers in manufacturing the cars and check the operation machines. The company paid the salaries to engineering and technology supervisor for their job. Dong Feng Motor Company will give the employees some insurance premium such as the pension insurances, medical insurances and unemployment insurances to ensure the safety working in the factory and the loyalty of the employees. This consider the cost components in manufacturing DongFeng A60.
Dealer commission is also cost components for DongFeng A60. This is because Dong Feng Motor Company pay the commission to the dealer for the car sold. The company has to incur all the commission paid. Since Dong Feng Motor Company has borrowed the loan from the bank to solve their financial problems, so they need to pay back the bank interest. The bank interest paid by the company to the bank has been indirectly charge through the product that the company produced. In this case, the cost components for DongFeng A60 included bank

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