Time study elements for product costing. Include NVA time or not?

Hello all,

We cost the products we make based on two common principles.
The cost of the materials and a time study on the process steps to account for our labor costs.

My question is, for costing purposes (not production rates), should Non-Value added and Required Non-Value added elements be included in the labor costs?
My brain says Yes, and as we address those elements our profit margin will only increase.

Is this correct?

Thanks! Mark