Full product costing requires the recovery of all costs generated by all business functions in the value chain.

Question

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Full product costing includes the recovery of costs incurred by all business functions involved in bringing a product or service to market. It takes into account both direct costs (such as materials, labor, and manufacturing overhead) and indirect costs (such as marketing, administrative expenses, and research and development). This approach ensures that all costs are properly allocated to products/services and enables more accurate pricing decisions.

Full Product Costing Requires the Recovery of All Costs Generated