Warehouse rent is a part of d. distribution cost.

Here's why:

a. Production cost: This is the cost associated with the actual production of goods or services. It includes direct materials, direct labor, and manufacturing overheads. Warehouse rent does not fall under this category as it is not directly involved in the production process.

b. Prime cost: This is the total of direct materials cost and direct labor cost. Again, warehouse rent does not fall under this category.

c. Factory cost: This is the cost incurred in the factory to produce goods. It includes direct materials, direct labor, and factory overheads. While warehouse rent could be considered a factory overhead, it is more commonly categorized separately.

d. Distribution cost: This is the cost associated with storing and delivering the product to the customer. Warehouse rent falls under this category as warehouses are used to store products before they are delivered to customers.

Question

Warehouse rent is a part of d. distribution cost.

Here's why:

a. Production cost: This is the cost associated with the actual production of goods or services. It includes direct materials, direct labor, and manufacturing overheads. Warehouse rent does not fall under this category as it is not directly involved in the production process.

b. Prime cost: This is the total of direct materials cost and direct labor cost. Again, warehouse rent does not fall under this category.

c. Factory cost: This is the cost incurred in the factory to produce goods. It includes direct materials, direct labor, and factory overheads. While warehouse rent could be considered a factory overhead, it is more commonly categorized separately.

d. Distribution cost: This is the cost associated with storing and delivering the product to the customer. Warehouse rent falls under this category as warehouses are used to store products before they are delivered to customers.

Knowee AI · Accepted Answer

Warehouse rent is a part of d. distribution cost.

Here's why:

a. Production cost: This is the cost associated with the actual production of goods or services. It includes direct materials, direct labor, and manufacturing overheads. Warehouse rent does not fall under this category as it is not directly involved in the production process.

b. Prime cost: This is the total of direct materials cost and direct labor cost. Again, warehouse rent does not fall under this category.

c. Factory cost: This is the cost incurred in the factory to produce goods. It includes direct materials, direct labor, and factory overheads. While warehouse rent could be considered a factory overhead, it is more commonly categorized separately.

d. Distribution cost: This is the cost associated with storing and delivering the product to the customer. Warehouse rent falls under this category as warehouses are used to store products before they are delivered to customers.

Warehouse rent is a part of .a.production cost.b.prime cost.c.factory cost.d.distribution cost.

Question

Solution

Similar Questions

Upgrade your grade with Knowee