The correct answer is: B. production cost incurred on product.
Gross margin is the difference between sales revenue and cost of goods sold. It is a measure of profitability and is often used to evaluate a company’s performance.
The cost of goods sold is the cost of the products that a company sells. It includes the cost of the materials used to make the products, the cost of labor to produce the products, and the cost of overhead, such as rent and utilities.
The production cost incurred on a product is the cost of producing that product. It includes the cost of the materials used to make the product, the cost of labor to produce the product, and the cost of overhead, such as rent and utilities.
The marketing cost incurred on a product is the cost of marketing that product. It includes the cost of advertising, the cost of sales promotion, and the cost of public relations.
Therefore, the correct answer is: B. production cost incurred on product.