Selling indirect costs (Selling overheads)

Selling indirect costs (selling overheads) are costs that are incurred in order to attract and retain customers. Together with administrative and distribution overheads they form non-production indirect costs (non-production overheads).

Selling overheads can include for example:

• rent, depreciation or insurance of shop buildings
• salaries and travel expenses of sales representatives
• costs to make price lists and product catalogues

Selling overheads are in most accounting systems (or even in all?) treated as period costs and booked immediately to profit & loss statement.

This is also the case under IAS 2 – Inventory.