Question: Different meanings of product costs. There are at least 3 different purposes for which we measure product costs. They are
(1) pricing and product mix decisions,
(2) determining the appropriate charge for a government contract, and
(3) for preparing financial statements for external reporting following Generally Accepted Accounting Principles.
On the following table, indicate whether the indicated cost would be included or excluded for the particular purpose. If your answer is not definitive (include or exclude), provide a short explanation of why.
