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
The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were compl

diff between cost estimation and cost accounting

critically explain cost accounting as 1. a service activity 2. a descriptive/analytical discipline 3. an information system

Freshly Ground Investments have just made an investment of $550 000 in a new Toyota Hilux (with trailer) delivery vehicle. This vehicle will be used for deliveries and generate rev

Early customers at Graffiti Week balk at the price for Moondoggie Reserve. The marketing department at DFW, Jolene, conducts some research that suggests Stanislaus county residents

need help to achieve my assignment

2012                     2011 Cash                               12200                 17700 Acct receivable                  25200                  22300 Investments

Vince's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs t

In the beach city of Santa Barbara, California, there are seven bathing suit stores, each with the same schedule of costs and each facing an identical demand curve. Swim N Style is

product mix decisions with capacity constraint