Accounts Concepts

The Accounting of Selling and Distribution of Overheads in Cost Accounting. two in manufacturing and non-manufacturing concerns selling function is involved besides manufacturing or purchase of goods. In order to perform this function expeditiously selling and dissemination expenses atomic number 18 incurred in all the concerns. some of these expenses are not identified with products and that is why these are include indirect lives. The sole aim of the business is to maximize lettuce but this is only possible by reducing the cost of production or change magnitude the gross sales in the alert markets or through the entry in the new markets. No doubt cost of production is reduced by increasing the production but increase in sales is a must to meet the increase are undertaking sales promotion activities but they are required to face arch competition also. Under such circumstances it becomes necessary for a concern to incur selling and distribution expenses and sometimes these are so heavy that these are even more than the manufacturing expenses. In some concerns after sales services is provided for special products handle radios, televisions, refrigerators, washing machines, sewing machines and some special facilities and discounts are minded(p) to the wholesalers and retailers.

Accounting and control of selling and distribution expenses which are generally incurred after the production of the goods (also called after-prodcution costs) has assumed an increased importance in these days in order to determine the cost of sales and profitability of each job and product, to control the selling and distribution costs, to fix prices and formulate sales price policy, to fix optimal sales levels and to make decisions regarding sales i.e. selling under disparate conditions, markets, regions and by different methods. The accounting of selling and distribution knock requires three types of analysis: . According to nature or prey of expenditure. . By function or cost centre. By... If you want to induct a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper