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Discuss manufacturing versus Non – Manufacturing Costs

Discuss manufacturing versus Non – Manufacturing Costs

Answers

Wilfred
We have discussed above the various elements of total cost of a manufacturing concern. Manufacturing costs consist of: direct material cost, direct labour cost, direct expenses "(if any), and production overheads. Administration overheads and selling and distribution overheads are considered as non-manufacturing costs.
These costs are shown as under:-
1. Manufacturing Costs = Direct material + Direct labour + Direct expenses (if any ) + Production overheads.
2. Non-manufacturing costs = Administration overheads + Selling costs overheads + Distribution overheads
3. Total manufacturing costs = Manufacturing costs + Non-manufacturing costs

Manufacturing costs are also known as production costs or factory costs.
Wilfykil answered the question on April 15, 2019 at 09:26

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