Question

Write short notes on Selling cost.

Answer 1

In short, selling costs is a broader concept than the advertisement expenditures. ... In short, selling costs are those which are made to create the demand for the product. Transport costs should not be included in selling costs; rather these should be included in the production costs.

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Answer 2

Answer:

${\bold{\red{\huge{Selling\:Cost}}}}$

Explanation:

Selling cost, as explained before is the price which is paid by a company in order to make people buy its products. This means that the payment is made to engage in the making of the product as well as its promotional activities to reach out to the maximum target buyers. It can be termed as the “creation of demand”. On the other hand, production cost refers to the expenditure that is made in the manufacturing, handling, transportation routes and means, storage and delivery of a product. This implies whatever it takes to get the product into being and existence.

Selling cost refers to the expenditure, which is done by a company. This includes the promotion as well as the distribution of the product. The primary motive is to convince buyers to buy your product instead of opting for something else.

Selling cost of a company means the salaries paid out, commissions needed to be handed out, the rent to put up at a showroom, advertisement costs as well as the expenses involve for other promotional means.

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