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Product and Period Cost in a Service Business I financial adviser charges 500 per hour and requires 3 hours with a client before producing a
Product and Period Cost in a Service Business I financial adviser charges 500 per hour and requires 3 hours with a client before producing a pension plan. Advertising cost 2000 per month. The client is charged 2100 on completion of the 3 hour sequence of consultation. During one week the financial adviser provides 20 hours of consultation. The statement of cost is as follows Product Cost Labour: 20 hours @500 per hour 10,000 Period Cost Advertising 2,000 If the consultation was complete for 6 clients and 1 client had only 2 hours consultation by the end of the week Required Produce a calculation of the profit at the end of the week
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