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Explain product cost
Product costs are those costs which are associated with and directly identifiable with the product. In other words, which are assigned to the product are product costs. Under marginal costing variable manufacturing costs and under absorption costing total manufacturing costs constitute product costs. A product cost is thus the sum of the costs assigned to a product for a specified purpose.
Characteristics of irrelevant costs
Standard costing in modern environment Standard costing has traditionally been associated with labor-intensive operations, but it can be applied to capital-intensive production
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