Question

explain distinction between selling cost and production cost​

Answer 1

Answer:

According to Chamberlin, cost of production includes all those expenses which are incurred to manufacture and provide a product to the consumer to meet his given demand or want, while..

the selling costs are those which are incurred to change, alter or create the demand for a product.

Answer 2

The distinction between selling cost and production cost:

Selling cost

• Selling cost is the company's expenditure.
• The expense involved in distribution as well as the promotion of the products.
• It is the money spent on salary, commission, rent, and other associated expenses.

Production cost

• Production cost is the expenditure involved in manufacturing the product, and then its handling, storage, delivery, transportation, etc.
• It is the expense involved in creating a product and then maintaining it.
• It is the cost of meeting the customer's demand.