Selling and Administration Expenses Ratio

Selling and Administration Expenses Ratio

This ratio indicates the economy and efficiency in the selling administration of the concern. Administration expenses refer to all expenses witch are incurred by the general administration of the concern. For example: Office salary, rent etc. Selling expenses refers to all those expenses incurred for the selling and distribution of goods. This ratio is expressed as a percentage.

Selling and Administration Expenses Ration

= Selling and administration expenses/Net Sales * 100