sölukostnaðar

Sölukostnaður, or selling expenses, are the costs incurred to secure and complete the sale of goods or services. They form part of operating expenses and are generally expensed in the period in which they arise, in contrast to production costs that are capitalized into inventory.

Typical components include advertising and marketing, compensation and commissions for the sales force, travel and entertainment related to selling activities, distribution and delivery costs to customers (freight-out), packaging tied to sales, showroom or sales office costs, and depreciation of sales-related assets. Customer service and after-sales support may also be included as selling expenses, depending on the accounting framework.

Classification of sölukostnaður can vary. Many elements are fixed or variable: variable items include sales commissions and delivery costs that vary with sales volume, while fixed items include salaries of sales management, advertising budgets, and showroom rents. Some costs are mixed and allocated accordingly within financial reporting.

Accounting treatment: on the income statement, selling expenses are presented as part of operating expenses (often within SG&A). They are not included in cost of goods sold. Under absorption costing, only manufacturing costs are included in inventory, and selling expenses are expensed when incurred. Under variable costing, selling expenses are treated as period costs.

Importance: managing sölukostnaður is important for profitability analysis, pricing decisions, and marketing budgeting, and it helps assess the efficiency of the sales organization and related activities.