Difference between Selling and Distribution Cost

distributon expense is a part of selling expense. its comes under the heading of selling expense. selling expense included various other heads like advertisement expense, distribution expense, packing expense, octroi, sales tax, hidden profit, cost of product etc etc. while distribution expense is the expense occured by the producer of the goods in the form of transportation cost barred by him for making the goods reach the retailers, wholesellers or directly to the godown or factory outlet.

Selling and Distribution Cost Budget

This budget is the forecast of the cost selling and distribution for budget period and is clearly related to the sales budget. All expenses related to selling and distribution of the various products as indicated in the sales budget is included in it. These expenses are based on the volume of sales set in the sales budget and budgets are prepared for each item of selling and distribution overheads. As advertisement are spread over more than one period. Selling and distribution overheads are divided into fixed and variable category with reference to volume of sales. Separate budgets are prepared for variable and fixed items of selling and distribution overheads. Certain items of selling and distribution costs as cost of transport department are included in the departmental production cost budget from control point of view rather that including in selling and distribution costs budget
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