An Example of a Nonproduction Cost Is

question 28

Multiple Choice

An example of a nonproduction cost is

• A)wages paid to assembly-line employees.
• B)manufacturing supplies.
• C)insurance on manufacturing facilities.
• D)the treasurer's salary.

---

Definitions:

Processed Further

A term used in cost accounting to describe materials or products that are subjected to additional operations or stages of processing beyond the initial production stage.

Relevant Costs

Expenses directly tied to a specific business decision, which should be considered when making that decision.

Incremental Revenues

Additional income that is generated by increasing sales activities or by introducing new products or services.

Special Order

A customer order for a product or service that is not normally produced or offered, often requiring unique specifications.