Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Question

Quizplus · Accepted Answer

Nonmanufacturing costs are indeed classified into two categories: selling and administrative. Selling costs include expenses related to promoting and marketing products or services, such as advertising and sales commissions. Administrative costs pertain to overhead expenses associated with the management and administration of the business, such as salaries of executives, legal fees, and office rent.

Nonmanufacturing Costs Are Generally Classified into Two Categories: Selling and Administrative