Control of Selling & Distribution Overheads

Control of selling and distribution
expenses is a difficult task. The reasons for this are as follows :
1. The incidence of selling and distribution overheads depends mainly on external
factors, such as distance of market, extent and nature of competition, terms of sales,
etc. which are beyond the control of management.
2. These overheads are dependent upon the customers, behaviour, their liking and
disliking, tastes etc. Therefore, as such control over the overheads may result in loss
of customers.
3. These expenses being of the nature of policy costs, are not amenable to control.
In spite of the above difficulties, the following methods may be used for controlling them.