A company manufactures and sells toys and incurs the following three costs: (i) Rental of the finished goods warehouse (ii) Depreciation of its own fleet of delivery vehicles (iii) Commission paid to sales staffWhich of these are classified as distribution costs?
A、(i) and (ii) only
B、(i) and (iii) only
C、(ii) and (iii) only
D、(i), (ii) and (iii)
A、(i) and (ii) only
B、(i) and (iii) only
C、(ii) and (iii) only
D、(i), (ii) and (iii)
【参考答案及解析】
Remember you are only looking for costs that are directly related to getting the finished goods from the production line to your customers. Before they can be distributed, finished goods may have to be temporarily stored in a warehouse therefore the rental of the warehouse will be regarded as a distribution cost. In addition, you will need delivery vehicles for distribution purposes - any costs related to these vehicles will be classed as distribution costs. Hence both (i) and (ii) are distribution costs (option A). Commission paid to sales staff is a selling cost.
Remember you are only looking for costs that are directly related to getting the finished goods from the production line to your customers. Before they can be distributed, finished goods may have to be temporarily stored in a warehouse therefore the rental of the warehouse will be regarded as a distribution cost. In addition, you will need delivery vehicles for distribution purposes - any costs related to these vehicles will be classed as distribution costs. Hence both (i) and (ii) are distribution costs (option A). Commission paid to sales staff is a selling cost.