Advertising expenses incurred on a product in a business organization should be charged to?
Question 1 Report
Advertising expenses incurred on a product in a business organization should be charged to?
Answer Details
Advertising expenses incurred on a product in a business organization should be charged to the sales department.
The reason for this is that advertising is a part of the selling process, and its purpose is to increase sales and revenue for the company. Therefore, it makes sense for the advertising expenses to be accounted for in the same department that is responsible for generating those sales.
Charging advertising expenses to the production department or the purchases department would not be appropriate because those departments are primarily responsible for creating or acquiring the products, not selling them. Similarly, charging advertising expenses to the administration department would not be appropriate because that department is generally responsible for supporting the overall operation of the company, rather than the specific activities of any one department.
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