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.
Nonmanufacturing costs are generally classified into two groups: marketing (or selling) costs and administrative costs.

Question

Quizplus · Accepted Answer

Nonmanufacturing costs are generally classified into two groups: marketing (or selling) costs and administrative costs. Choice A is incorrect because conversion costs and prime costs are classifications of manufacturing costs, not nonmanufacturing costs. Choice B is incorrect because direct materials and direct labor are also classifications of manufacturing costs, not nonmanufacturing costs. Choice D is incorrect because direct labor is also a classification of manufacturing costs, and manufacturing overhead is not considered a nonmanufacturing cost because it is indirectly related to the production process.

Nonmanufacturing Costs Are Generally Classified into What Two Groups