Question

Distinguish between selling expenses and general and administrative expenses.

Distinguish between selling expenses and general and administrative expenses.

Homework Answers

Answer #1
  • Selling expenses are those expenses that are related and are incurred in relation to the sale of the product or services.
    Example of these selling expenses can be:
    Advertising expense
    Sales Commission
    Sales department salaries
    Freight out
    Depreciation of Delivery van .
  • On the other hand,
    General & Administrative expenses are those operating expense that are incurred for the general running of business office and administration.
    Example of these expenses can be:
    Salaries of office employees
    Depreciation on Office Building
    Rent of Office Building
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