Asked by Britney Hicks on Apr 26, 2024
Verified
Expenses to promote sales by displaying and advertising merchandise,make sales,and deliver goods to customers are known as:
A) General and administrative expenses.
B) Cost of goods sold.
C) Selling expenses.
D) Purchasing expenses.
E) Non-operating activities.
Selling Expenses
Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.
Advertising Merchandise
Promotional items branded with a logo or slogan and distributed as part of a marketing strategy.
Displaying Merchandise
The practice of arranging products in a retail setting to maximize visibility and aesthetic appeal, thereby enhancing the potential for sales.
- Understand the components and purpose of selling expenses in financial reporting.
Verified Answer
PA
Pedro Augusto GurgelApr 29, 2024
Final Answer :
C
Explanation :
Expenses related to promoting sales, displaying and advertising merchandise, making sales, and delivering goods to customers are known as selling expenses. This includes expenses such as salaries and commissions for sales personnel, advertising costs, marketing expenses, equipment and supplies for sales, and shipping costs for delivering goods to customers.
Learning Objectives
- Understand the components and purpose of selling expenses in financial reporting.