Full cost of the product is:
A)the sum of fixed costs in all the business functions of the value chain
B)the sum of variable costs in all the business functions of the value chain
C)the sum of all variable and fixed costs in all the business functions of the value chain
D)the sum of all costs in the value chain minus marketing costs

Question

Quizplus · Accepted Answer

The full cost of the product includes both fixed and variable costs in all the business functions of the value chain. It is also important to note that marketing costs should be included in the calculation of the full cost of the product, so option D is not correct. Option A is incomplete as it only includes fixed costs, and option B is also incomplete as it only includes variable costs.

Full Cost of the Product Is