QUESTION: Nonproduction expenses such as marketing, research and development, and general administrative costs can play an important role in a company's ability to meet long-term goals. Discuss how the budgets for each of these costs contribute to the company's success. Which do you think plays the greatest role and why? SOLUTION: The non-production expenses are those expenses which do not contribute directly to the manufacturing cost. These contribute indirectly to the growth and profitability of the company. These are not incurred for any particulars product or unit, these are incurred for an organization as a whole
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