The advantages of sales promotion methods are that they get more people interested in the product or into the business as well as let consumers try the product at a lower cost in hopes that they will later buy the product at full cost. The disadvantaged are cost and improper use of the methods for the product being sold.

The two terms are different names for the same costing technique. Full cost refers to the principle that all overheads, fixed and variable, should be treated as product costs and be absorbed, or allocated, to cost objects. Cost objects can be various items but typically are units of product or service.

This principle is distinct from variable costing in which fixed costs are considered to be period costs rather than product costs, and as such are not allocated to products.

Product costs are used to value stocks of unsold products and cost of production so the selection of basis, full cost or variable cost, will affect the profit of individual products and influence management decisions.

a full warranty guarantees that if a product is found to be defective within the warranty period, it will be repaired or replaced at no cost to the purchaser.

Cost plus pricing is based on full product cost plus desired profit margin to arrive at the product price, while marginal cost plus pricing makes use of the product's total variable cost plus desired profit margin to arrive at the product's price. Marginal cost plus pricing (or "mark-up pricing) is based on demand, and completely ignores fixed costs in arriving at the product's price.

Predetermined rate is overhead rate allocated to product cost to find out the full product cost and it is an estimated rate based on total expected overhead on normal capacity divided by some machine hours or direct labor hours etc.