For Natural Classification we have a term and definition in Accounting.

Natural Classification (Accounting)

of costs focuses on the nature of the cost item. In this classification structurethe total operating costs of an activity can be classified into manufacturing costs and commercial costs. Manufacturing costs include all direct materials and direct laboras well asfactory overhead. Such factory overhead costs include indirect materials (such as factory supplies & lubricants)indirect labor (such as supervision and inspection) and other indirect costs (such as rentinsuranceand utilities). Commercial expenses include marketing expenses (such as advertisingprintingand sales salaries) and administrative (general and administrative (G&A)) expenses (such as administrative office salariesrentand legal expenses).

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