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Marketing and administrative costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Marketing and administrative costs

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • November 6, 2015 at 1:20 pm #280815
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Hello Mr John,

    why in Bpp Q 1 1.9 mcq for total factory cost they did not add the Marketing and administrative costs,

    Thanks,

    November 6, 2015 at 5:11 pm #280878
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    I am away from home until Tuesday and I do not have the BPP Revision Kit with me.

    However, factory cost is only costs incurred within the factory (i.e. costs of production). Marketing and admin costs are not costs of production and are not costs in the factory (it is the factory that does the producing).

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