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Hello sir ,
I was doing a question on the BPP revision kit on TAR , why is marketing and adminstrative costs not part of fixed cost ?, as far as i understand from your lecture , any other cost besides materials are fixed.
Thank you 🙂
It is because we are only ever looking at factory costs i.e. costs of actually producing the goods (we calculate the factory cost per hour).
Marketing and admin costs are not production costs.
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