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{"id":3932,"date":"2022-11-16T12:04:31","date_gmt":"2022-11-16T12:04:31","guid":{"rendered":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/?p=3932"},"modified":"2024-08-21T10:23:49","modified_gmt":"2024-08-21T10:23:49","slug":"what-are-non-manufacturing-costs-or-period-costs","status":"publish","type":"post","link":"https:\/\/www.worldrealestatenetwork.com\/wordpress\/2022\/11\/16\/what-are-non-manufacturing-costs-or-period-costs\/","title":{"rendered":"What are non-manufacturing costs or period costs?"},"content":{"rendered":"

\"nonmanufacturing<\/p>\n

However, if management wants to determine the profitability of a specific product or customer, it is necessary to allocate or assign nonmanufacturing costs to the products and\/or customers outside of the financial statements. In the end, management should know whether each product\u2019s selling price is adequate to cover the product\u2019s manufacturing costs, nonmanufacturing costs, and required profit. Job order costing requires the assignment of direct materials, direct labor, and overhead to each production unit. The primary focus on costs allows some leeway in recording amounts because the accountant assigns the costs. When jobs are billed on a cost-plus-fee basis, management may be tempted to overcharge the cost of the job. Cost-based contracts may include a guaranteed maximum, time and materials, or cost reimbursable contract.<\/p>\n