The production costs help management in making decisions for pricing the products they produce, management observes the cost structures through economic calculations where the costs are determined by both direct and indirect materials, labor both direct and indirect and other indirect manufacturing expenses which generate a final price.
While both direct and indirect labor and other indirect manufacturing expenses generate a final price, the income statements of the productive entities reflect in detail the expenses and costs generated at the time of elaborating or exercising the production of food, household items, among others.
The parameters taken into account by the organizations for setting the price of a product are obtained after the factors that influenced the production of the final product are determined through the spreadsheets or cost report.
In the case of the object of study in this research, which is the banana item, the parameters taken into account are not clear since they are not fixed by the producers directly, but there is an office in charge of publishing the price at which the producers set to sell their product, and this brings with it a series of questions on the part of the productive sector.
When it comes to making decisions to sell their production, they do not make them based on what they consider to be their investment expenses, that is to say, their real costs, and they are forced to follow the price trend set by a separate organization, which often does not cover all of their operating and personal expenses.