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Hi john sir again
John sir i could not still understand exactly what is administration cost. like cost of purchasing department is considered admin cost because that is involved in management of business but why sales department cost is not considered so, that is also involved in management of business. plz guide me a little bit out of your precious time.
There are three basic types of cost in a business.
Manufacturing costs are those involved in actually producing the product.
Selling and distribution costs are those involved in selling and delivering the product.
Administration costs are those costs for running the business (such as the wages of the reception, the telephone costs, the wages of the accounts department.)
I assume that you have watched the lecture on here (where I give more examples)?
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