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What is real cost of product?

Updated: 9/16/2023
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Q: What is real cost of product?
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Is real cost and money cost is similar?

Real cost and money cost is not similar.Real costs are actually much broader in scope and cover all the aspects of sacrifice involved in acquiring a product.


What do you mean by Money cost and Real cost?

Money cost refers to actually dollar amount, whereas Real cost takes into account the efforts involved in making a product, such as physical or mental effort.


The real cost in the supply chain is end-to-end pipeline cost which includes?

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Is depreciation on a machine a period cost or product cost?

product cost


Is factory supplies a product cost or period cost?

Product cost


Advantages and disadvantages of beta testing?

@ Roll out a High Quality Product. @ Real time Validation of product @Save the Cost that could arise after product launch. @ Maintain Better Customer Relationship


Cost of a delivery truck is a period cost or product cost?

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Is fixed cost relevant in determining price of a product?

The fixed cost is relevant in determining price of a product. This is a cost that is associated with the product and will contribute to the total production cost of a product.


Why marginal costing method not Suitable to be used by manufacturer for external financial reporting and tax purpose?

I think..... In marginal costing method only variable cost is considered as product cost and fixed cost is not considered as product cost. But in reality product cost include fixed and variable, thus both variable and fixed costs should be considered while allocating cost. Marginal costing is used for inside reporting and absorption costing is used for outsider to clarify the real cost of product........ Am i right? Please confirm it


Differentiate between period cost and product cost?

Period Cost: It is that cost which must be incurred by the company no matter it produce any product or not. Product cost: Product cost is that cost which is necessary to produce any production units to earn revenue.


Is factory supplies a product or a period cost?

Product cost