Is delivery and Installation consider part of manufacturing cost for this type of business?


Joined
Jun 16, 2022
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I do make kitchen cabinets, and I wonder how shall I consider the delivery and installation of kitchens cabinets. Is it part of overhead or direct labour cost?
The cabinets are no useful if not installed, and cannot be used unless they are installed.
Assembly is done on sites, and it requires little manufacturing work such as drilling, cutting ..etc.
 
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Joined
Apr 1, 2020
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Hi Yawan,

Delivery and installation is not a cost of manufacturing. It is not a direct labor cost. It is an Operating Expense.

Regards

Kat
 
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