Question at position 5 Product costs used for government contracts generally include: marketing costs, and customer service costsproduction costs, distribution costs, marketing costs, and customer service costsdesign costs and production costsall the costs for pricing and product-mix decisions题目解析

Question

Question at position 5 Product costs used for government contracts generally include: marketing costs, and customer service costsproduction costs, distribution costs, marketing costs, and customer service costsdesign costs and production costsall the costs for pricing and product-mix decisions题目解析

BlackTom AI · Accepted Answer

The question asks which costs are generally included in product costs used for government contracts, among the given options.
Option 1: 'marketing costs, and customer service costs' — These costs are typically considered selling or after-sale costs rather than production costs. For government contracting, the focus is usually on costs directly tied to creating and delivering the product, not marketing or support expenses, so this option is unlikely to be correct.
Option 2: 'production costs, distribution costs, marketing costs, and customer service costs' — While production costs are relevant, distribution, marketing, and customer service are not standardly treated as product costs for pricing government contracts; they are often categorized as period or selling/administrative costs rather than the core cost of production. This makes the option less appropriate in the government-contract context.
Option 3: 'design costs and production costs' — This pairing aligns with the common view that for government contracts, especially in fields like defense or customized goods, both the design (development) costs and the ongoing production costs are considered when determining product costs used for pricing or cost-based contracts. Design costs are often significant in the early phase, and production costs cover the manufacturing activities, fitting the government’s need to evaluate cost components tied to delivering the product.
Option 4: 'all the costs for pricing and product-mix decisions' — This is overly broad. Not all listed categories (such as marketing or customer service) are typically bundled into product costs for government contract pricing; some are more related to overall business strategy, sales, or after-delivery support rather than the direct cost base used for contract pricing. This makes the statement too inclusive for the standard practice in government contracting.
Overall, the rationale emphasizes that government-contract cost bases tend to concentrate on the core items directly tied to creation and provision of the product (design/development and production), rather than external or auxiliary activities such as marketing or service, which explains why option 3 is the most appropriate choice.

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