Non-production indirect costs (also known as non-production overheads) are indirect costs not incurred during manufacturing.
Examples of non-production overheads: rent, depreciation, power or insurance of administrative and shop buildings, salaries of administrative staff and sales representatives
Non-production overheads can be split into:
Non-production overheads are in most accounting systems (or even in all?) treated as period costs and booked immediately to profit & loss statement.
This is also the case under IAS 2 – Inventory.