Respuesta :
differecne between manufacturing and nonmanufacturing costs applies is only to companies that make a physical product.
Costs related to manufacturing and non-manufacturing company operations are incurred by manufacturing enterprises. These expenses are specifically allocated between the direct and indirect costs involved in producing a good. According to Simple Studies, direct labor, direct material, and manufacturing overhead are the three main subcategories of manufacturing expenses.
Selling and administrative costs are included in nonmanufacturing costs, commonly referred to as "period" costs. For manufacturing firms to operate successfully and efficiently, costs is extremely relevant. Management and external decision-makers (investors) can learn useful information about the company's profitability and cost-control procedures by identifying, sorting, and allocating cost data
The management team's ability to keep costs under control determines a company's profitability.
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