Your Ask Joey ™ Answer

What are selling expenses?

Any cost or expenses that is incurred to sell or promote a product or service is considered a “selling expense”. Selling expenses are a key category of operating expenses, which means they are subtracted from gross profit to calculate operating profit.

Selling expenses are typically categorized as period expenses, which means that they are recognized on the income statement in the period that the expense is incurred.

Some different types of selling expenses include marketing, advertising, sales commissions, compensation for sales team, shipping product to the customer, social media, tradeshows, and promotional materials.

Back To All Questions

You might also be interested in...

  • What is an operating expense?

    An operating expense can be phrased as an expense that is incurred in the normal course of business that are not related to the product or service the business is selling. Basically, these are costs that are necessary to run the business and support the sale of the product or service the business is providing...

  • What is an income statement?

    An income statement measures how much money the company generates in the form of revenue and sales, and then how much actually turns into profit after subtracting cost of goods sold and operating expenses. Below is a very summarized income statement that illustrates the key components of any income statement. The goal is to maximize...