Nonmanufacturing costs are generally classified into what two groups?
A)Conversion costs and prime costs
B)Direct materials and direct labor
C)Marketing costs and administrative costs
D)Direct labor and manufacturing overhead

Question

Quizplus · Accepted Answer

Nonmanufacturing costs are costs that are not directly associated with the production process. These costs can be divided into two groups: marketing costs and administrative costs. Marketing costs include advertising, sales, and promotion expenses. Administrative costs include salaries and benefits for employees who do not work on the production line, such as accounting, human resources, and legal staff.

Nonmanufacturing Costs Are Generally Classified into What Two Groups