Question

(d) Selling expenses should be divided among the
different departments on the basis of
(i) unrealized profit
(ii) profit
(iii) sales
(iv) space occupied

Answer 1

I hope profit is the answer

Explanation:

I hope it's the correct answer

Answer 2

Answer:

The correct option is (iii) sales.

Explanation:

• Selling expenses are the expenses which are incurred by company to promote sales and service to customers. Thus, selling overhead includes Commission,  Salesmen’s Salaries, Travelling expenses,  Legal expenses for recovering debt, etc.

• Selling Expenses are apportioned on  different basis which are  Transportation, Advertisement and Sale Promotion, Storage and Warehousing, Direct selling, Credit and Collection etc.

• More the sales, more should be the selling expense and vie versa.

The most appropriate basis to allocate selling expense is sales.

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