We appreciate your visit to All of the following items are considered manufacturing costs except for A Tires for an automobile manufacturer B Sales commissions for a car manufacturer C. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Sales commissions for a car manufacturer are not considered manufacturing costs; manufacturing costs include expenses like direct materials and fixed operating costs, but not post-production expenses.
All of the following items are considered manufacturing costs except for sales commissions for a car manufacturer. Manufacturing costs generally include variable costs, such as materials and labor, and fixed operating costs, like factory overhead. However, sales commissions are not included because they are post-production expenses and are part of selling and administrative costs.
The items such as tires for an automobile manufacturer and cream for an ice cream maker are clearly direct materials, which are variable costs that vary with the quantity produced. Taxes, like plant property taxes for an ice cream maker, while not directly tied to the production process, are still considered part of the fixed operating costs of maintaining a manufacturing facility.
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Answer:
Sales commissions for a car manufacturer
Explanation:
Manufacturing cost are all costs incurred in the process of producing a product. They are costs of items or services directly related to making a product. Examples of these cost are factory utilities, cost of component parts for producing a product such as tires for an automobile manufacturer, tax on manufacturing equipment or building such as plant property taxes for an ice cream maker, cost of manufacturing input such as cream for an ice cream maker, factory depreciation, and among others.
However, sales commissions for a car manufacturer is not a manufacturing cost but a component of selling and distribution expenses to the car manufacturer. Selling and distribution expenses are expenses incurred in order to sell and delivered a product to the consumers, and these include advertisement expenses, salaries and commission of salesmen, cost of price list and catalogue, and others.
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