Selling and distribution expenses ratio

This quotient reveals the association between selling and distribution expenses and sales volumes especially in a making set up and also in merchandized organizations dealing with finished goods. The ratio is as follows;

Applicability of Selling and distribution expenses ratio in Decision Making by Management

Selling policy-The management need to set selling policy to ensure sales are continuously increasing

Distribution policy-the management need to ensure enough selling points are established in the regions of focus

About the Author - Dr Geoffrey Mbuva(PhD-Finance) is a lecturer of Finance and Accountancy at Kenyatta University, Kenya. He is an enthusiast of teaching and making accounting & research tutorials for his readers.