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
What type of activity could a company engage in to improve their cash flows in their Cash Flows Statement? Is this ethical? Could borrowing money make the cash from operations be

Does it make sense for PP's management to use so many discount rates in its evaluation? Explain. What additional information would you like to have to make a more informed decis

Mr. Homer Simpson, President and Chief Executive Officer of Duff's Beer Making Supplies Inc. recently hired you as the new budget analyst for his company.  As your first duty, he h

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According t

What does the cost principle mean for a company's income statement?

explain one operation: unit or output cost

how to treat an increase in output on marginal costing

Shrinkage - Production Process This refers to a disappearance or loss of material inputs utilized throughout the production process. It happens mainly via the evaporation. Thi

Valuation of Work In Progress The concept of Equivalent units It is a notional quantity of completed goods in the production process. This is a collection of work applic