P2_ Direct Product Profitability

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May 20, 2018 at 9:32 pm #453044
simphiwe26
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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
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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
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