TMI BlogSELLING AND DISTRIBUTION OVERHEADSX X X X Extracts X X X X X X X X Extracts X X X X ..... and assignment of Selling and Distribution Overheads, for determination of the cost of sales of product or service, and the presentation and disclosure in cost statements. 2. Objective The objective of this standard is to bring uniformity and consistency in the principles and methods of determining the Selling and Distribution Overheads with reasonable accuracy. 3. Scope This standard should be applied to cost statements, which require classification, measurement, assignment, presentation and disclosure of Selling and Distribution Overheads including those requiring attestation. 4. Definitions The following terms are being used in this standard with the meaning specified. 4.1 Abnormal cost: An unusual or atypic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... storage yards, stock yards etc.,) Note : In case of machinery involving technical help in installation, such expenses for installation are part of cost of production and not considered as cost of Selling and Distribution Overheads. 4.8 Selling Overheads : Selling Overheads, also known as Selling Costs, are the expenses related to sale of products and include all Indirect Expenses in sales management for the organization. 6 For Example: 1. Salaries of sales personnel 2. Travelling expenses of sales personnel 3. Commission to sales agents 4. Sales and brand promotion expenses including advertisement, publicity, sponsorships, endorsements and similar other expenses. 5. Receivable Collection costs 6. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibution Overheads. 5.7 Any demurrage or detention charges, or penalty levied by transportation or other authorities in respect of distribution activity shall not form part of the Selling and Distribution Overhead. 5.8 Penalties and damages paid to statutory authorities or other third parties shall not form part of the Selling and Distribution Overheads. 5.9 Credits/recoveries relating to the Selling and Distribution Overheads including those rendered without any consideration, material and quantifiable, shall be deducted to arrive at the net Selling and Distribution Overheads. 5.10 Any change in the cost accounting principles applied for the measurement of the Selling and Distribution Overheads shall be made only if it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to related parties 8 . 4. Any Subsidy/Grant/Incentive and any such payment reduced from Selling and Distribution Overheads. 5. Credits/recoveries relating to the Selling and Distribution Overheads. 6. Penalties and damages excluded from the Selling and Distribution Overheads. 8.2 Disclosures shall be made only where material and significant. 8.3 Disclosures shall be made in the body of the Cost Statement or as a foot note or as a separate schedule. 8.4 Any change in the cost accounting principles and methods applied for the measurement and assignment of the Selling and Distribution Overheads during the period covered by the cost statement which has a material effect on the Selling and Distribution Overheads sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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