Selling and Distribution Costs

Explanation: Selling and Distribution Costs represent the expenses incurred by a company in promoting, marketing, and distributing its products or services to customers. These costs include expenses related to advertising, sales commissions, promotional activities, transportation, warehousing, and other costs associated with delivering products to customers. Selling and distribution costs are essential for reaching target markets, generating sales, and maintaining customer relationships. 

Example: Maruti Suzuki reported Selling and Distribution costs of 5,332.70 crore rupees in FY23, reflecting the expenditures incurred by the company in marketing its vehicles, managing dealer networks, and delivering products to customers. These costs play a crucial role in Maruti Suzuki’s sales and distribution strategies, supporting its efforts to reach consumers, promote its brand, and drive sales growth in the competitive automotive market. Analyzing selling and distribution costs helps assess the effectiveness of Maruti Suzuki’s marketing initiatives and distribution channels in driving revenue and market share.

You can view the quarterly and annual Selling and Distribution Costs for any company on Radar under Total Assets in the Quarterly Results and Yearly P/L sections.