ECONOMICS

Detailed explanation-1: -The manufacturing overhead cost includes all the indirect expenses such as indirect labor, factory change, factory utilities etc. So from all of the above Shipping charges on the finished product is not an example of manufacturing overhead cost.

Detailed explanation-2: -The indirect costs of an organization that are not classified as manufacturing overhead. They include administration overheads, selling overhead, distribution overhead, and (in some cases) research and development costs.

Detailed explanation-3: -Examples of Job Order Costing A company that designs and produces custom-made machines and/or machine tooling. A company that constructs custom-designed buildings. A company that modifies trucks to meet customers’ special needs.

Detailed explanation-4: -Non-manufacturing costs are those costs that are not incurred to manufacture a product. Examples of such costs are salary of sales person and advertising expenses.