Selling Costs
Definition:
Selling costs are the costs incurred by a company in order to sell its products or services. They are one of the three main categories of expenses that businesses incur, along with cost of goods sold (COGS) and general and administrative (G&A) expenses.
Example:
Here are some examples of selling costs:
Commissions: Payments made to salespeople based on the number of products or services they sell.
Advertising: Costs incurred to promote a product or service, such as television commercials, print ads, and online ads.
Marketing: Costs incurred to generate leads and interest in a product or service, such as trade shows, direct mail, and public relations.
Sales administration: Costs incurred to support the sales team, such as salaries, travel expenses, and office supplies.
Customer service: Costs incurred to provide support to customers after they have purchased a product or service, such as phone support, email support, and warranty repairs.