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Selling expenses include the cost incurred for promoting sales and retaining customers where as distribution expenses includes warehouse charges and product delivery charges. You might require professional help to complete the assignment on this topic because of the vast area it covers. This is why we have come up with our online service for selling and distribution expenses assignment help.
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Selling and distribution expenses
- Selling expenses:
Selling or sales expenses include all the expenses incurred by the sales department to promote or make a sale. Examples of selling expenses are salesperson salaries and wages, payroll taxes, commissions, travel and entertainment, advertisement, utilities etc.
- Distribution expenses:
Distribution expenses are the expenses incurred to deliver the product from production unit to the client or the end user. Distribution cost is bifurcated and it includes several types of expenses. For example, if a distributor sells to the retailer and retailer to the end user then there are separate costs involved at each stage and each cost would be included to find out the total distribution cost or expense. Other costs involved in distribution expenses are handling cost, warehouse cost, salary to distribution manager, freight cost etc. If the product is sold internationally then it will include cost like air freight etc.
Expenses incurred for selling and distribution may be fixed or variable depending upon the requirement of the business. For example, showroom expenses, cost of samples, warehouse rent etc may remain fixed where as commission on sales, bad debts, salaries, packing charges, delivery charges etc may vary. These expenses should be recorded in the books of accounts to understand financial situation of the business in a better way and make necessary changes if required.
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