Selling and distribution overheads are calculated with reference to ........

Costing - Phase (I & II) Overview of Cost and Management Accounting

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Selling and distribution overheads are calculated with reference to :

Units produced

Units sold

Units of raw material purchased

Units of opening stock of finished goods

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Explanation:

Selling and distribution overheads are calculated on the basis of number of units sold during a particular period. Selling and distribution overheads includes expenses incurred on the promotion of sales of the product, delivery and distribution of the goods to the customers like advertisement expenses, carriage outward, delivery van expenses, warehouse charges etc