What falls under Selling Expenses?

Selling expenses are those costs directly associated with the sale of a company's products or services. They are essential for generating revenue and include a variety of costs incurred as part of the sales process.

Salaries, commissions, and travel-related expenses for sales personnel are directly related to the act of selling. These costs are necessary for compensating the workforce responsible for marketing and selling the company's offerings. Sales personnel play a critical role in interacting with customers, which is why their compensation (salaries and commissions) and the costs incurred for travel to meet clients are classified under selling expenses.

Other options do not fit into the category of selling expenses. Rent and utilities for the office are general administrative expenses. Salaries of production staff and factory overhead relate directly to manufacturing activities, not sales. Advertising costs and promotions, while important, are often categorized separately as marketing expenses rather than selling expenses, depending on the company's accounting policies. Thus, the choice regarding salaries, commissions, and travel-related expenses for sales personnel is the appropriate classification under selling expenses.