P2_ Direct Product Profitability

This topic has 1 reply, 2 voices, and was last updated 2 years ago by Cath.

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