Is distribution cost an operating expense?

Question

operating expenses are subdivided into classifications in selling,general and administrative expenses.

Answer 1

This comes under variable overhead cost so is a product cost theoretically and so an operating expense.
Sometimes it is not considered as product cost but as process cost in whch case it comes under selling and administrative and so again is Operating expense.

Answer 2

Distribution Expense

Answer 3

You'd pay tax on the $150. You'd show the whole 1650 as revenue, and the 1500 as an expense.

Answer 4

Yes. A normal P&L would look like this:

Sales
- product cost
- labour ( including admin)
= Gross profit

- Direct operating expenses
ie: repairs, equipment, transportation

- Indirect operating expenses:
ie: rent, cash o/s

= net profit

Answer 5

yes because distribution cost is a selling expense.