Product cost: Does it include firm costs including salaries?

[GnoSiS]

I don't recall what the product cost figure in the firm window includes, yes it has freight as an additional figure but:

1. Are the salaries for the people working in the linked units included?

2. How do I gauge advertising and R&D costs into this? I have trouble understanding if I spend too much for these 2 activities. How do you gauge it?

[eleaza]

I don't recall what the product cost figure in the firm window includes, yes it has freight as an additional figure but:

1. Are the salaries for the people working in the linked units included?

2. How do I gauge advertising and R&D costs into this? I have trouble understanding if I spend too much for these 2 activities. How do you gauge it?

Each firm has its own income statement to tell you that. Press the big yellow $ sign above the training budget bar in firm window.

The cost shown in the unit product information window I think only include Variable Cost (I believe not including overhead, ads or training, etc since they are "fixed cost", not sure about the salary though, but I don't believe it is included either. I think it's just "upstream price" + freight, and for raw material firm, it's just amortization over time), and the easiest way to roughly gauge profitability of a firm is to just check the profit graph at the top.