Asked by Katina Zhu [STUDENT] on May 28, 2024
Verified
In some organisations downstream costs are treated as product-related.
Downstream Costs
Expenses incurred after the production phase, such as distribution and marketing costs, often associated with bringing a product to the market and selling it.
Product-Related
Pertaining to attributes, development, or improvements directly associated with physical goods.
- Recognize and delineate the principal elements of production expenses, including materials, labor, and overhead costs.
Verified Answer
AW
Avery WeznerMay 28, 2024
Final Answer :
True
Explanation :
Some companies include downstream costs, such as warranty expenses and post-sales customer support, as part of the overall product cost. This approach is used to get a more accurate picture of the profitability of a product over its entire lifecycle.
Learning Objectives
- Recognize and delineate the principal elements of production expenses, including materials, labor, and overhead costs.