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Total cost is the cost of production plus

  • A.factory overhead
  • B.the profit margin
  • C.selling and distribution overhead
  • D.administration overhead

Answer: C

Correct answer: selling and distribution overhead

\[ \mathrm{Total\ cost} = \mathrm{cost\ of\ production} + \mathrm{selling\ and\ distribution}. \] The cost of production already includes factory and administration overhead, so the only layer left to add is the cost of getting the product to the customer.

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