Question: font write clearly tq. Costs are subdivided into two categories: Production and Nonproduction. Production costs can be further classified as direct materials, direct labour, and

font write clearly tq. font write clearly tq. Costs are subdivided into

Costs are subdivided into two categories: Production and Nonproduction. Production costs can be further classified as direct materials, direct labour, and overhead. On the other hand, nonproduction costs are divided into selling costs and administrative costs. The relationship of production and nonproduction costs is depicted in Figure 1. By referring to Figure 1, describe the following terms and give TWO (2) examples for each term. Cost Production Nonproduction Direct Materials Selling Direct Labours Administration Overhead Figure 1 a) In Production Cost i. Explain Direct and Overhead Cost? ii. What does it include in overhead Cost? (Student required to state 3 examples) a) In Non-Production cost, there are 2 main elements. i. Explain both Selling and Administration cost ii. What does it include in Administration Cost? (Student required to state 3 examples)

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