Items Normally Included in The Selling And Distribution Expenses, Administration Expenses and Finances Expenses of the Income Statement

Major Expenses Category In Income Statement

Selling And Distribution Expenses  Category of the Income Statement

These are expenses associated with the process of selling and delivering goods and services to customers:-

• Salaries of marketing manager, sales director and sales management
• Salaries and commission of salesmen
• Travelling and entertainment expenses of salesmen
• Marketing costs like advertising and sales promotion expenses
• Costs of running and maintaining delivery vans
• Discount allowed to customers for early payment of their debts
• Bad debts written off
• Allowances for bad debt provision

Administration Expenses

These are expenses of providing management and administration for the business:-

• Salaries of directors, management and office staff
• Rent and rates
• Insurance
• Telephone and postage
• Printing and stationery
• Heating and lighting

Finance Expenses:

• Interest on a loan
• Bank overdraft interest