An Example of a Distribution Cost That Can Be Directly

question 63

Multiple Choice

An example of a distribution cost that can be directly assigned to selling activity would be:

• A)Advertising costs.
• B)Commissions.
• C)Sales manager's salary.
• D)Telephone expenses.

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Definitions:

Mark-Up

The amount added to the cost of a product or service to cover overhead and profit.

Selling Price

The amount of money for which a product is sold to the customer, after accounting for discounts, rebates, and other adjustments.

Payment

The transfer of money, or its equivalent, from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Mark-Up

The additional amount added to the cost price of goods to cover overhead and profit, resulting in the selling price.