Beruflich Dokumente
Kultur Dokumente
GENERAL EXPENSES
Other than the manufacturing costs, additional general expenses are involved in the
operations of a company. These general expenses may be classified as (1) administrative expenses,
(2) distribution and marketing expenses, and (3) research and development expenses. General
ADMINISTRATIVE COST
Administrative costs are necessarily included for the economic analysis to be complete.
These are expenses that an organization incurs not directly tied to a specific function such as
opposed to an individual department. Salaries of senior executives and costs of general services
20% (OL+DS&CL+M&R) from Peters and Timmerhaus 5th Ed., Table 6-18, p. 274.
= Php3.506/kg IA
SCHEDULE DD-2
Distribution and marketing costs are expenses incurred in the process of selling and
distributing the finished products. These expenses vary widely for different types of plans
depending on the particular material being produced, other products sold by the company, plant
location, and company policies. These costs usually range from 2%-20% of the total product cost.
11% (Total Product Cost) from Peters and Timmerhaus 5th Ed., Table 6-18, p. 274.
1060.79 + 3.506
TPC =
0.84
TPC = Php1267.02
Php1267.02
= 0.11 ( )
kg IA
= Php139.37/kg IA
SCHEDULE DD-3
Research and development paves the way for the constant development of new methods
and products. Research and development costs include salaries and wages for all personnel directly
connected with this type of work, fixed and operating expenses for all the machinery and
equipment involved, cost for materials and supplies and consultants fee.
5% (Total Product Cost) from P&T 5th Ed., Table 6-18, p. 274.
Php 1267.02
= 0.05 ( )
kg IA
= Php63.35/kg IA