November 2008
Beginner
448 pages
11h 33m
English
Content preview from Budgeting Basics and Beyond
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10.6. Control over Distribution Costs
Distribution cost control involves functional responsibility and cost objectives. Costs should be assigned by responsibility center. Distribution costs by territory may be controlled by reorganizing the territory so that effort is more in line with benefits (e.g., selling expenses may be reduced with better coverage), eliminating unprofitable territories, changing the method of sale, reassigning salespeople, altering distribution channels, modifying advertising policy by territory, changing warehouse facilities, and identifying neglected customers who may buy.
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