Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

ACCA December Exams

Post comments & Vote in Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>

P2_ Direct Product Profitability

Forums › Ask CIMA Tutor Forums › Ask CIMA P2 Tutor Forums › P2_ Direct Product Profitability

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Cath.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 20, 2018 at 9:32 pm #453044
    simphiwe26
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    Why would salary for senior management not included in the cost considered in calculating product profitability?

    I am of the understating that we include any indirect costs

    Thanks
    Simphiwe

    May 30, 2018 at 2:22 am #454731
    Cath
    Participant
    • Topics: 0
    • Replies: 444
    • ☆☆☆

    Hi
    Not quite…
    In direct product profitability we need to include all the direct product costs…

    Warehouse Costs + Transport Costs + Store Costs = Direct Product Costs

    Senior management is too vague to be a direct product cost.

    Hope that helps
    Cath

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.