Testing costs are charged to the Cost of Sales account. Testing costs in the production process are charged to the manufacturing expense account, and costs for other tests are charged to the administrative expense account. Manufacturing costs are incurred by the enterprise production unit for the production of products or the provision of labor services, should be included in the cost of products or services but no dedicated cost items of the various production costs. Selling expenses are the expenses incurred in the process of selling goods and materials and providing labor services.
Management costs
The management costs incurred by an enterprise for the organization and management of its production and business activities, including start-up costs incurred during the preparatory period, the board of directors and administrative departments in the operation and management of the enterprise, as well as company funds to be borne by the enterprise, including the wages and benefits of administrative staff, consumption of materials, low value perishable items. Welfare, material consumption, amortization of low value consumables, office expenses and travel expenses.
Trade union expenses and board of directors' fees borne by the administrative department include board members' allowances, meeting fees and travel expenses, etc., and the fees for hiring intermediaries, consulting fees including consultants' fees, litigation fees, business hospitality, property tax, vehicle and vessel tax, urban land-use tax, stamp duty, technology transfer fees, mineral resources compensation fees, research expenses and sewage charges. Subsequent expenditures such as fixed asset repair costs incurred by the production workshop departments and administrative departments of an enterprise should be included in administrative expenses when they are incurred.