Question

What is the total production cost?

Value Chain Cost Classification Customer Service Rand D | Design Purchases Distribution || Marketing 5.300 Newspaper advertisements Payment to consultant for advice on location of new store 2,800 30.000 3,300 Purchases of merchandise Freight-in Salespeople's salaries Depreciation expense on 4.200 delivery trucks 1,200 Research on selling satellite radio service Customer Complaint Department Rearranging store layout $ 2.950 Total $ 33.300 S 9.500

Answer 1

Total Production lost a Direct material + Direet labour t Direct Expenses & factory overheads Purchase call and Hence, In the Freight in Given cost question, only is giveni Hence Production cost = F Purchase & Freight - 30000 & Boon =) 833300. Notor factory / Manufet Production coste activites. Hence material cost t are pelated with it mainly Includes conversion cost