Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
6th Edition
ISBN: 9780134162690
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 8, Problem 1P
To determine
Identify the production cost and periodic cost.
Expert Solution & Answer
Explanation of Solution
Production cost are those cost that incurred during the manufacturing or purchasing of the goods. Thus, the costs storage and material handling cost for raw material, Lubricant for the machinery,
Periodic cost are those cost that are not involved in the process of manufacturing or purchasing of the goods. Thus, gains or loss from the disposable of asset, depreciation of the company value and leasehold cost are tge periodic costs.
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Chapter 8 Solutions
Contemporary Engineering Economics Plus MyLab Engineering with eText -- Access Card Package (6th Edition)
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