![]() ![]() The term "general expenses" refers to the overhead costs incurred by a company that is not directly related to the sale of products or services but rather to the operation of the business on a day-to-day basis. Direct selling expenses consist of transaction costs and commissions paid on a sale. Indirect selling expenses are those that are incurred prior to or after the sale has been made, such as salaries, benefits, and wages for salespeople, as well as travel and accommodation expenses. There is a connection, both directly and indirectly, between the costs of selling a product or service and the costs of producing revenue. Third-party software use in-house for operations, but not packaged in your product (think Slack, Microsoft Office, Zoom, etc.)Īs the name suggests, the expenses associated with SG&A are frequently segmented into three primary groups: selling, general, and administrative.Customer success costs associated with cross-selling/up-selling.Things we advice against including in COGS: Any other direct employee costs required to deliver the ongoing service.Cost of any third-party software or data that is included in your delivered product.Employee costs for customer support/success of the application, but excluding any sales costs for up-sells, or cross-sells. ![]()
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