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    susan1sars's Avatar
    susan1sars Posts: 14, Reputation: 1
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    #1

    Mar 22, 2011, 11:19 AM
    Is marketing expense included in mfg overhead
    Would marketing expense be included in manufacturing overhead; would sales commissions be included in mfg overhead
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
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    #2

    Mar 22, 2011, 12:02 PM


    Read this first: Expectations for the Homework Help board

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    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #3

    Mar 22, 2011, 12:04 PM

    Think about what the term "manufacturing overhead" means. These are expenses that are necessary to the operation of the factory but can't be assigned to a particular product as it is manufactured. For example the cost of heating factory - it is definitely necessary for manufacturing, but the cost can't be assigned to any one product being made in the factory. The cost of heating is independent of how much product is produced. But now think about marketing expense - does the factory incur marketing expenses in order to manufacture products? Does it incur sales commissions expenses?
    susan1sars's Avatar
    susan1sars Posts: 14, Reputation: 1
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    #4

    Mar 22, 2011, 01:32 PM
    Comment on ebaines's post
    Very clear; I understand. Thanks

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