Administration Expenses these are expenses incurred in providing control, direction and management of the firm Such as expenses relating to secretarial, accounting, rent, rates, insurance, water, electricity etc for the office. Also included in depth of office furniture & equip, office building office stationery, manufacture costs of office equipment, legal expenses, etc.

Selling & distribution expenses These are expenses incurred to secure orders and increase sales of the enterprise. These expenses are incurred in the movement of finished goods from factory to the warehouse and then delivering the goods to customers’ e.g transport charges for moving goods from factory to warehouse & vice versa, warehouse costs, depreciation of delivering van and related course etc.


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