For a car manufacturer, any costs for things used to make cars are manufacturing costs. Sales commissions are not costs for things used to make cars. Therefore, they are not manufacturing costs.
For an automobile manufacturer, any costs for things used to make automobiles are manufacturing costs. Cars must have tires. Therefore, tires for an automobile manufacturer are a manufacturing cost.
Ice cream is a product, and any costs for things used to make it are manufacturing costs. Property taxes on plant property are a cost that is necessary to provide the physical plant and plant equipment needed to manufacture the ice cream. Therefore, plant property taxes are manufacturing costs.
Ice cream is a product, and any costs for things used to make it are manufacturing costs. Cream is a manufacturing cost for an ice cream maker because it is used to make the ice cream.
|
