Horti-Business Management (2+0)

Factors Affecting Costs

• The analysis of the cost of marketing is not a study for costs accountants alone. It is a dual problem which confronts every business executive.
  
• Factors affecting the cost of marketing are many and vary from time to time, between different markers and with different products.
  
• The most important factors, however, are :
  
1. Perishability
   
2. Breakage and spoilage
   
3. Standardization and grading
   
4. Transportation
   
5. Storage
   
6. Unfair and wasteful trade customs
   
7. Business failures
   
8. Returns and approvals
   
9. Risk from depreciation
   
10. Seasonal demand and supply
    
11. Extent of selling operation
    
12. Degree of identification
    
13. Relation between bulk and value
    
14. Size of order
    
15. Packaging and cost
16. the need to retail products and
    
17. Need for mechanical serving.