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Dear John,
I recently attempted a question – in Fixed cost calculation I included Marketing and Admin cost, but this was excluded in BPP answer.
Why was Marketing and Admin excluded from Factory cost per hour?
Are there any other examples of detractors that may come up that should be excluded?
Many thanks
Factory cost is the costs in the factory – i.e. the production costs. So only production costs should be included.
Thanks John,
With LCC should I include everything regardless of factory production including – disposal, marketing, admin?
Thanks
Please do start a new thread when you are asking about a different topic – the topic heading is throughput and not life-cycle costing 🙂
With life-cycle costing – yes, we include all costs.
I do suggest that you watch our free lectures – they cover everything needed to be able to pass the exam well.
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