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Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
What expenses are included in selling and distribution expenses?
sales commission
Example of operational audit?
purchase, marketing, selling and distribution expenses, production
What costs other than direct materials costs and direct labor costs incurred in the manufacturing process are classified as?
Indirect costs(salaries, materials not directly involved in manufacturing), period costs(selling and admin costs)
Are selling expenses fixed or variable cost?
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
What is Selling And distribution percentage of sale?
This is the amount of the company's sales that is spent in selling and distribution efforts. To calculate, divide the selling and admin costs by the revenue and multiply the result by 100 (all figures can be found on the company balance sheet).
Are selling costs variable costs?
If selling costs varies with production level then selling costs are variable costs but if they remain fix then these are fixed costs.
What does pharmaceuticals do?
selling or distribution of medicines
What are the costs to the shareholder of investing in mutual funds?
a redemption fee is usually levied on shares held for less than a specified period. A distribution fee is a charge on current shareholders to cover the costs of advertising, promotion, selling, and other activities
Factors affect of distribution channel?
A distribution channel may be affected by the costs of transport and the costs of remunerating the distributors. A long distribution chain definitely increases the end cost that is passed on to the end user.
Which Compare and contrast the different types of distribution?
There are three main types of distribution channels: direct, indirect, and hybrid. Direct distribution involves selling directly to consumers, while indirect distribution involves using intermediaries like retailers or wholesalers. Hybrid distribution uses a combination of both direct and indirect methods. Each type has its own advantages and considerations in terms of control, costs, and reach to customers.
What do fixed selling costs include?
The total cost of marketing, advertising, and selling a product.
Are selling and administrative expenses treated as product costs or as period costs under variable costing?
Period Costs.
Are selling and administrative expenses treated as product costs or period costs under variable costing?
Period Costs.
What expenses are included in selling and distribution expenses?
sales commission
Under variable costing variable selling and administrative costs are included in product costs?
No. They are not.they are part of period costs.
Firms with a high degree of operating leverage are?
Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease. Have a high amount of fixed costs relative to their variable costs. DOL= CM / Net Income We derive CM by the eqaution of Selling Price - Variable Costs If a firm has high variable costs relative to their selling price then they will have a small CM and therefore their DOL will decrease.
