Editing Cost (section)

== Manufacturing costs vs. non-manufacturing costs ==
'''[[Manufacturing cost]]s''' are those costs that are directly involved in [[manufacturing]] of products.<ref>{{Cite web |title=Production Costs vs. Manufacturing Costs: What's the Difference? |url=https://www.investopedia.com/ask/answers/042715/whats-difference-between-production-cost-and-manufacturing-cost.asp |access-date=2024-01-30 |website=Investopedia |language=en}}</ref> Examples of manufacturing costs include [[raw materials]] costs and charges related to workers. Manufacturing cost is divided into three broad categories:<ref>{{Cite web |title=Total manufacturing cost: What is it and how to calculate it |url=https://www.oneadvanced.com/news-and-opinion/total-manufacturing-cost-what-is-it-and-how-to-calculate-it/ |access-date=2024-01-30 |website=Advanced |language=en}}</ref>

#[[Direct materials cost]].
#[[Direct labor cost]].
#[[Manufacturing overhead cost]].
 
Non-manufacturing costs are those costs that are not directly incurred in manufacturing a [[product (business)|product]].<ref>{{Cite web |date=2021-02-27 |title=2.3: Cost Terminology |url=https://biz.libretexts.org/Courses/Folsom_Lake_College/ACCT_311%3A_Managerial_Accounting_(Black)/02%3A_Types_of_Costs/2.03%3A_Cost_Terminology |access-date=2024-01-30 |website=Business LibreTexts |language=en}}</ref> Examples of such costs are salary of sales [[personnel]] and [[advertising]] expenses. Generally, non-manufacturing costs are further classified into two categories:<ref>{{Cite web |last=Bragg |first=Steven |date=2023-10-08 |title=Nonmanufacturing overhead costs definition |url=https://www.accountingtools.com/articles/nonmanufacturing-overhead-costs-definition |access-date=2024-01-30 |website=AccountingTools |language=en-US}}</ref>

#Selling and distribution costs.
#[[Administration of business|Administrative]] costs.