The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?
Correct answer: B. Commercial cost
- A. Direct cost
- B. Commercial cost
- C. Variable cost
- D. Conversion cost
Explanation
Commercial cost refers to the costs of running the business apart from manufacturing or production costs, such as administration, selling, and distribution expenses. Direct, variable, and conversion costs are classifications of particular cost elements, not this overall category.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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