Direct product profitability adjusts the gross margins of different products to reflect differences in handling costs and selling costs.

Question

Quizplus · Accepted Answer

Direct product profitability takes into account not only the direct costs of producing a product, but also the indirect costs associated with handling and selling the product. By adjusting the gross margins of different products based on these costs, a more accurate picture of each product's profitability can be obtained.

Direct Product Profitability Adjusts the Gross Margins of Different Products