Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Nonmanufacturing Costs

Nonmanufacturing costs are expenses not directly related to the production of goods, including selling, general, and administrative expenses.

Selling

The process of persuading someone to buy a product or service, a fundamental activity in business.

Administrative

Pertaining to activities related to the management and general operations of an organization, often involving tasks like paperwork, communication, and office upkeep.