Description
The “loaded” cost of a product includes other costs. Some are direct such as shipping and handling, sales taxes, and import fees or duties. The company incurs other costs that are allocated to the cost of the product such as salaries, labor, rent, depreciation, and sales, general and administrative costs. As a result, the margin really isn’t $61,750 in this example is it? Question 1 100 words: The same concept applies to KB homes. Does anyone have any follow-up thoughts regarding cost allocations and how this helps organizations plan for profitability? Question 2 100 words: How is this concept applied at to someone in the accounting department at work at clothing store?
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