Non-manufacturing costs are those costs that are not incurred to manufacture a product. Examples of such costs are salary of sales person and advertising expenses. Non-manufacturing costs are those costs that has not any concern with the manufacturing of the goods, Non-manufacturing costs includes marketing , sales and other promotional activities.
Cost Classification as Manufacturing and Non-manufacturing: Learning objectives of this article: Define and explain manufacturing and non-manufacturing costs. What is the difference between manufacturing and non-manufacturing costs costs? Identify and give examples of each of the three basic manufacturing cost categories. Manufacturing firms are
Job Order Costing – The Flow of Cost: Learning objective of this article: Understand the flow of costs in a job order costing system and prepare appropriate journal entries to record cost. Apply overhead cost to work in process using a predetermined overhead rate.
Treatment of Costs Under Activity Based Costing (ABC) System Learning Objectives: How manufacturing, non-manufacturing and idol capacity costs are treated under activity based costing system? Contents: Non-manufacturing costs and activity based costing Manufacturing costs and activity based costing Costs of idle capacity and activity