Question

What do you understand by Real Cost?

Answer 1

Answer:

The concept of real costs is an all encompassing idea. From an economic point of view, real costs refers to the cost of producing a good or service, including the cost of all resources used and the cost of not employing those resources in alternative uses (see website link below.)..........

Answer 2

The real cost includes all the necessary materials for the production of goods.

How does real cost affect the production of goods?

• The real cost deals with commodities produced by a company
• Real costs include labor costs, transportation cost, and production cost
• All direct and indirect costs come under real cost which is used for the production of goods
• Transportation cost is used when the goods are transported and supplied to the market for production