Selling Costs and Distribution Costs

This text defines selling costs and distribution costs. Selling costs are indirect costs related to selling products or services, while distribution costs are the costs incurred in handling a product from the time it is completed in the works until it reaches the ultimate consumer.

Questions

• What are selling costs?
• What are distribution costs?
• What are some examples of selling costs?
• What are some examples of distribution costs?

Answers

• Selling costs are indirect costs related to selling products or services, and include all indirect cost in sales management for the organization.
• Distribution costs are the cost incurred in handling a product from the time it is completed in the works until it reaches the ultimate consumer.
• Some examples of selling costs include salaries, commission, and traveling expenses for sales personnel, advertisement cost, legal expenses for debt realization, market research cost, royalty on sale, and after sales service cost.
• Some examples of distribution costs include transportation cost, cost of warehousing salable products, and cost of delivering the products to customers.