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:

Interest Rates

The cost, represented as a portion of the principal, that a borrower must pay to a lender for borrowing assets.

Present Value

The contemporary value of money or cash flows due in the future, calculated with a designated rate of return.

Received

To have been given, accepted, or acknowledged something that is sent or provided.

Economic Rent

The excess payment made to a factor of production over and above what is needed to keep it in its current use.