There Are Basically Two Distinct Methods of Calculating Product Costs

question 11

Essay

There are basically two distinct methods of calculating product costs.
Required:
Compare and contrast the two methods.

---

Definitions:

Oil

A viscous liquid derived from petroleum, used as fuel and in the manufacture of various goods.

Natural Gas

An energy-producing fossil fuel that predominantly contains methane, utilized for heating, cooking, and generating electricity.

Net Energy Ratio

A metric that compares the amount of energy produced to the amount of energy used to produce it.

Natural Gas

A fossil fuel composed primarily of methane, used for heating, electricity generation, and as a fuel for vehicles.