Elements of non - manufacturing costs, Cost Accounting

Elements of Non - Manufacturing costs

Non-Manufacturing costs are costs incurred via all activities such support the production of services and goods. They are selling costs and administration costs, distribution costs.  These are explained as given as:

a) Administrative costs: Is the sum of costs related along with the overall management of the enterprise that cannot be readily identified along with one of the major functional areas as like an example of salary of the factory manager would be seen like a production cost but the personnel officer's salary will be viewed like administrative cost as the personnel function does work for all other functions of the enterprise.

b) Selling Costs: Is the sum of costs related along with the securing of orders from customers? Involved in this area will be items like the salaries paid to the expenditure and salesmen on advertising.

c) Distribution costs: Is the sum of costs related along with warehousing the products and their delivery to customer? The cost of wooden pallets on that products are stacked for delivery to customers and the cost of delivery whether by using the company's own vehicles or outside haulage firm are examples of distribution costs.

d) Finance Costs: These are costs incurred to secure funds to finance the organization's activities. These involve interests on loans and dividends, overdrafts to shareholders, interests on debentures.

e) Development or Research Costs: These are costs such are incurred to invent new products or to modify the existing ones, like costs incurred to get more information on those products.

Posted Date: 2/5/2013 2:56:11 AM | Location : United States







Related Discussions:- Elements of non - manufacturing costs, Assignment Help, Ask Question on Elements of non - manufacturing costs, Get Answer, Expert's Help, Elements of non - manufacturing costs Discussions

Write discussion on Elements of non - manufacturing costs
Your posts are moderated
Related Questions
Accounting Treatment of Spoilage Costs 1) Normal Spoilage Costs: These costs are assigned to the good output utilizing two approaches as: (i) Omission Approach:  Under th

Standard Costing A standard cost is a predetermined calculation of how much is supposed to be incurred under specific particular working conditions. It is not an average of pa

If the net income under marginal costing is #100,000, calculate absorption costing, if opening and closing inventories are #20,000 and #15,000

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

Example of Job Order Costing The given transactions were made by a company in the month of December. Direct Materials a) 8,000/- was bought on credit, out of these

You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the proposal, you note that there are 500 material items, but y

The Federal Reserve adjusts short term interest rates based upon their perceptions of the needs in the economy.  Please describe the ways the Federal Reserve can influence interest

PH plc operates a modern factory that changes chemicals into fertilizer. Due to the the demand for  its product  is  seasonal,  the  company expects  that  there will be an average