cost of production is also called if there is selling and distribution expense
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The total cost will be the other name from the cost of production if the selling and distribution expenses are also included.
- The cost of production refers to the cost that the company has to pay while manufacturing its goods to sell in the market.
- There are various kinds of costs of production which are fixed costs, variable costs, marginal costs, total costs, etc.
- The industry can see which type of costs they want to include while calculating their cost of production.
- Selling cost is a type of indirect cost and this cost is the cost that the company pays for selling the goods manufactured.
- Distribution expense is the type of expense that the company pays in order to distribute or sell its goods.
- Some examples of selling costs and distribution costs are shipping, advertisement, etc.
- If the organization includes these types of costs in the cost of production it means that the organization what to know the total cost it paid to sell the goods in the market.
- Therefore, the total cost will be the other name from the cost of production if the selling and distribution expenses are also included.
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