Non-manufacturing costs include
A) marketing and administration.
B) direct materials.
C) indirect materials.
D) overhead.

Question

Quizplus · Accepted Answer

Non-manufacturing costs are costs that are not directly related to the production of goods. Marketing and administration costs fall under this category as they are not incurred in the manufacturing process but are necessary for running the business. Direct materials (B) and indirect materials (C) are manufacturing costs, and overhead (D) can include both manufacturing and non-manufacturing costs.

Non-Manufacturing Costs Include