Answer
A product cost is the sum of the costs assigned to a product for a specific purpose.
Three purposes for computing a product cost :
-pricing and product mix decisions,
- reimbursement under government contracts
-preparing financial statements for external reporting under GAAP.
Work Step by Step
A product cost is the sum of the costs assigned to a product for a specific purpose.
Three purposes for computing a product cost :
-pricing and product mix decisions,
- reimbursement under government contracts
-preparing financial statements for external reporting under GAAP.
