Noncost
Noncost refers to expenses that are not directly related to the production of goods or services, but are still necessary for the operation of a business. These costs are often categorized as indirect costs or overhead. Examples of noncost items include rent for office space, salaries for administrative staff, marketing and advertising expenses, utilities, and insurance. While these expenses do not directly contribute to the creation of a product, they are essential for supporting the overall business functions and enabling the production process to occur.
Distinguishing between cost and noncost can be crucial for accurate financial reporting and management decision-making. Direct