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    Question

    What type of cost is advertisement expense considered

    as?
    A Selling overhead cost Correct Answer Incorrect Answer
    B Administrative overhead cost Correct Answer Incorrect Answer
    C Manufacturing overhead cost Correct Answer Incorrect Answer
    D Research and development overhead cost Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Advertisement expense is considered an indirect cost that is associated with the selling function of a business, and hence is categorized as a selling overhead cost. Selling overhead costs include expenses related to advertising, marketing, sales commissions, and other costs incurred to promote and sell a company's products or services

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