About this document
31 Nonmanufacturing Overhead Explanation by Laura San Pedro is a document available to read on EtoBox.
Nonmanufacturing overhead costs, which include Selling, General & Administrative expenses and Interest Expense, are not considered product costs under GAAP and are reported as expenses in the period incurred. While these costs are not allocated to products for financial reporting, internal allocation is necessary for management to assess product profitability and make informed decisions. The document outlines methods for allocating nonmanufacturing costs, emphasizing the use of activity-based costing (ABC)
- Author
- Laura San Pedro
- Language
- EN