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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