Sir why Research and devolopemnt cost is treated as non production cost..? If reserch is to manufacture a product then why it is not production cost?
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Non production cost
10y ago#1The answer partly depends on the context of a particular question.
However in general the production cost is the cost of actually making the product. There are lots of other costs that are likely to occur (such as R&D and selling and delivery costs etc), but the cost of actually making each unit is the material, labour, and variable overheads in the factory on that one unit.
R&D may well have been necessary but they will only occur once - production may go on for many years.
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