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Highlight The Proper Classification of The Cost Items/expenses Non-Manufacturing Costs/Period Costs

This document classifies various cost items and expenses as either manufacturing costs, which include direct materials, direct labor, factory overhead, and conversion cost, or non-manufacturing/period costs, which include general and administrative costs as well as marketing costs like advertising. It provides examples of specific expenses that would fall under categories like direct materials, direct labor, factory overhead, and general administrative costs.

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Harold Garcia
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36 views

Highlight The Proper Classification of The Cost Items/expenses Non-Manufacturing Costs/Period Costs

This document classifies various cost items and expenses as either manufacturing costs, which include direct materials, direct labor, factory overhead, and conversion cost, or non-manufacturing/period costs, which include general and administrative costs as well as marketing costs like advertising. It provides examples of specific expenses that would fall under categories like direct materials, direct labor, factory overhead, and general administrative costs.

Uploaded by

Harold Garcia
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Highlight the proper classification of the cost items/expenses

Non-manufacturing
Manufacturing Costs/Product Costs
Costs/Period Costs
Cost Item/Expense General &
Direct Direct Factory Prime Conversion Direct Indirect Marketing
Administrative
Materials Labor Overhead Cost Cost Cost Cost Costs
Costs
1. Direct Materials
2. Indirect Materials
3. Direct Labor
4. Indirect Labor
5. Depreciation- Factory Plant
6. Insurance- Factory Building
7. Salaries- Accounting personnel
8. Wages- Factory workers
9. Utilities Expense- R&D department
10. Interest- Foreign Loans
11. Depreciation- Office Building
12. Advertising Costs
13. Rent- Factory Building
14. Gasoline, Oil, and Lubricants- Factory
15. Salaries- Marketing personnel

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