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Hello John,
1) Cost per product include production costs only.
2) Cost per unit includes both production and non-production costs.
3) Cost card includes both production and non-production costs and also included profit markup/margin.
Are these correct?Although what you have written for the first two is usually the case, it really depends on what the specific question in the exam asks for.
As far as the cost card is concerned, it doesn’t usually include the profit, it usually is just calculating the unit cost.
Sorry to interrupt, I have related question so I typed in here so that everyone can benefit.
In chapter 9, Illustration (Example 1), you have calculated cost card using absorption costing (in part (a)) and you have not added Non-production costs. Cost card includes non-production costs so why we are not adding them here?Again, it depends on the question. However the standard cost car usually just looks at the production costs because it is the standard cost of production that is used to value inventory.
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