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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1537 |
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Examples of indirect costs are heat, light, accounting or personnel and can be described, as costs would continue to be incurred even if the product or activity were discontinued.
When producing or manufacturing a product, there are costs that are assessed to all the different components that make up the product...
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This may either be the purchase price if the components are bought from outside suppliers, or the combined cost of materials and manufacturing processes if the component is made in-house. "In addition to being useful for management planning and control, product costs are used by manufacturing firms and merchandising firms to determine inventory values and, when the product is sold, the amount of cost of goods sold" (Marshall, 2003)...
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