Question

This week we focused on manufacturing costs, but selling, general, and administrative (SG&A) costs are also important. Using the company you selected for the discussion forum question, what specific types of SG&A costs would the company incur? How would these costs be considered in product costing?

As portfolio activities are to be self-reflective, please make sure to connect the portfolio assignment to:

• Your personal experiences. Reflect on how this assignment topic is applicable to and will benefit you.
• Course readings and any external readings.
• Discussion forum posts or course objectives

- I chose a beverage and food manufacturing company.

Answer 1

For a food and beverage manufacturing company, following are the SG&A Costs which are very important, which company will incur.

Selling

· Distribution expense

· Selling Expense

· Marketing expense

General

· Rent

· Property tax

· Utilities

· Consumables

· Equipments

Adminstrative

· Salaries

· Benefits

· Perquisites

· Wages

These costs can be considered in product costing if we follow activity based costing and allocate all the SG&A cost on the basis of production.