Selling and distribution overhead
Selling and distribution overhead, also known as selling, general, and administrative (SG&A) expenses, refers to the costs incurred by a company in the process of selling its products or services and managing its distribution channels. These expenses are not directly tied to the production of goods or services but are necessary for the company's sales and distribution activities.
Selling and distribution overhead typically includes the following types of expenses:
Sales Personnel Costs:
This includes salaries, commissions, bonuses, and other benefits for the sales team, including sales representatives, sales managers, and sales support staff.
Advertising and Marketing Expenses:
Costs associated with promoting the company's products or services, including advertising campaigns, online marketing, print media, television or radio commercials, public relations activities, and market research.
Distribution Costs:
Expenses related to the distribution of products or services to customers or intermediaries, such as transportation costs, warehousing costs, packaging materials, and logistics management.
Customer Service and Support Costs:
Expenses incurred in providing customer support services, including call centers, technical support, warranties, after-sales service, and customer relationship management (CRM) systems.
Administrative Expenses
General administrative costs that support the selling and distribution functions, such as salaries of administrative staff, office rent, utilities, office supplies, insurance, legal fees, and other overhead expenses.
Sales Promotion and Discounts:
Costs associated with sales promotions, discounts, trade show participation, incentives to customers or channel partners, and other promotional activities aimed at increasing sales.
Travel and Entertainment:
Expenses related to sales representatives' travel, client meetings, entertainment, and other business-related travel costs.
Selling and distribution overhead expenses are essential for companies to effectively market and sell their products or services and manage their distribution channels. These expenses are necessary to support sales growth, maintain customer relationships, and ensure efficient product distribution. Monitoring and managing selling and distribution overhead is crucial for companies to optimize their costs, improve profitability, and achieve sales targets.
Wimax company limited
Selling& distribution overhead
Year-2022 Year-2021
Salaries Wages& allowance xxxx xxxx
Advertisement xxxx xxxx
Brokerage& commission xxxx xxxx
Product delivery expense xxxx xxxx
vehicles up-keeping expense xxxx xxxx
Selling& distribution overhead(Total) xxxx xxxx