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.

The Portfolio Activity entry should be a minimum of 500 words and not more than 750 words. Use APA
citations and references if you use ideas from the readings or other sources.
This assignment will be assessed using the Portfolio rubric.

In this chapter we covered and understand the following topics with the real life example like
financial statement from one of the big companies of the world Bata Shoes Company which is
clear the details manufacturing costs including general, and administrative (SG&A) costs.

According to our learning objective now able to explain the main three types of manufacturing costs
(direct, indirect, and overhead) and their cost behaviors (variable, fixed, or mixed). Also able to determine
how business costs would be categorized under each cost behavior and type. Not only that but also can
explain the three cost methods and the types of businesses that would likely utilize each method as a
results can compare and contrast different cost methods and recommend an appropriate method for a
company.

1. Direct materials cost: Imported, Local Purchase

2. Direct labor: Direct wages

3. Manufacturing overhead: Remuneration to employees, Gas, water and electricity etc

specific types of SG&A costs would the company incur: like

Administration, selling and distribution expenses

Remuneration to employees

Health and other welfare expenses

Travelling expenses

Bank charges

Repairs and maintenance

Stationery

Postage, telegram and telephone

Entertainment expenses

Subscription and donation

Advertisement

Selling expenses

Rent, rates and taxes

General charges

Directors' fees

Auditors' fees

Legal and other professional fees

Insurance

Land revenue

Freight and transport

Packing expenses Commission

Royalty on Hush Puppies Brand

Royalty on Dr. Scholl Brand

Royalty on Naturalizer Brand

Royalty on Ben10 and Powerpuff Girls

Global Footwear Services fees

Trade mark license fees

IT fees

Electricity
Depreciation

 A mixed cost is a cost that contains both a fixed cost component and a

variable cost component.

 A fixed cost is defined as expenses that do not change as a function of the activity of a

business, within the relevant period. For example, a retailer must pay rent and utility bills

irrespective of sales.

 A Variable cost increase or decrease depending on a company's production volume;

 Manufacturing costs are the costs incurred during the production of a product.

 The costs are typically presented in the income statement as separate line items.

 Job order costing or job costing is a system for assigning and

accumulating manufacturing costs of an individual unit of output. The job order costing

system is used when the various items produced are sufficiently different from each other

and each has a significant cost. (When a company's output consists of continuous flows

of identical, low-cost units, the process costing system is more appropriate.)

 Time to use: A job order cost system is appropriate when products manufactured or

services rendered are tailored to customers' needs. Due to customized services, the

resources used for different customers will differ in variety and quantity.

 Definition of Process Costing

 Process costing is a term used in cost accounting to describe one method for collecting

and assigning manufacturing costs to the units produced.

 Time to use: A processing cost system is used when nearly identical units are mass

produced. Process costing is the optimal system for a company to use when the

production process results in many similar units. It is used when production is continuous

or occurs in large batches and it is difficult to trace a particular input cost to a specific

individual product.

 What Is Activity-Based Costing (ABC)?

 Activity-based costing (ABC) is a method of assigning overhead and indirect costs such

as salaries and utilities to products and services. 

 The ABC system of cost accounting is based on activities, which are considered any

event, unit of work, or task with a specific goal.

 Time to use: ABC is used to get a better grasp on costs, allowing companies to form a

more appropriate pricing strategy.