Non-Manufacturing Costs and Job Costing Homework Help

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Know the Relationship between Non-manufacturing Costs and Job Costing with Myhomeworkhelp.com

Unable to understand how non-manufacturing costs? Are you facing some trouble with your accounts assignment? Unable to make proper analyzation? How should you distinguish and calculate non-manufacturing costs? Well, it is only natural since job costing and non-manufacturing costs are supposed to confuse accounts students rather largely. However, with Non-manufacturing costs and job costing homework help, you can resolve any such problems.

Learning about non-manufacturing costs:

Before you delve into the relationship between job costing and non-manufacturing costs, it is first essential to brush up on your basic concepts. It is important that you first understand exactly what non-manufacturing cost is with Non-manufacturing costs and job costing assignment help.

Non-manufacturing costs include the expenses that are not listed under product cost and are related to selling, administrative and interests expenses of an organisation. It is not allocated to manufacturing costs and is instead listed directly under income statements. Even though non-manufacturing costs are associated with product cost, however, the selling price should be large enough to cover all the expenses including the non-manufacturing and job costing expenses.

Some typical costs it includes:

  1. Office supplies for an organisation.
  2. Expenses related to marketing and advertising department.
  3. Insurance expenses that cover areas outside the production house.
  4. Salaries and any commission along with benefits received.
  5. Maintenance and depreciation of equipment and buildings outside manufacturing.
  6. Interest on the business loans.
  7. Property taxes, rent and other expenses related to the space that is used by the organisation for non-manufacturing purposes.

You can understand all the other expenses that it includes with Non-manufacturing costs and job costing homework help.

How is it related to job costing?

While students have this misconception that job costing is directly related and works only for manufacturing company, however that is not entirely true. Job costing can be applied for non-manufacturing costs as well especially if it does not involve a manufacturing process. For example, service companies incur mostly non-manufacturing costs and hence, charge it directly to the income statement. ย However, it is not allocated for the purpose of financial reporting.

This can be thoroughly understood with Non-manufacturing costs and job costing assignment help as they can provide you with the requisite experts in the subject.

What are the methods for calculating non-manufacturing cost?

There are essentially four steps that need to be followed in order to allocate non-manufacturing costs to the income statement. Listed below are those four steps:

  1. Identification of the activities responsible for incurring non-manufacturing costs.
  2. Measuring those activities.
  3. Identification of the products and clients that require it.
  4. Allocation of the cost.

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