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Question
Selling and distribution expenses does not comprise of ___________.
Selling and distribution expenses does not comprise of ___________.
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Solution
The correct option is D Carriage inward
Carriage inwards is the expenditure that is incurred by the company while purchasing goods. It is the cost of transportation of goods from the place of suppliers to the place of business. Carriage inwards is directly related to procurement of goods and hence is direct expense.It is not a selling and distribution expense. A selling and distribution expense is incurred to perform sale or expenses after sales.
Carriage inwards is the expenditure that is incurred by the company while purchasing goods. It is the cost of transportation of goods from the place of suppliers to the place of business. Carriage inwards is directly related to procurement of goods and hence is direct expense.
It is not a selling and distribution expense. A selling and distribution expense is incurred to perform sale or expenses after sales.
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