Explain the methods that can be used for controlling Selling and Distribution Overheads. (4 Marks)

(a) The problem of controlling selling & distribution overheads can be tackled by adopting the following steps: (a) Comparison with past performance - Comparing the figures of selling & distribution overhead with the figures of previous period. (b) Budgetary Control-Selling & distribution overhead budgets may be used to control such overhead expenses by making a comparison of budgetary figures with actual figures of overhead expenses, ascertaining variances and finally taking suitable actions, (c) Standard Costing - Standards of selling & distribution expenses may be set up for salesmen, territories, products etc. The laid down standards on comparison with actual overhead expenses will reveal variances, which can be controlled by suitable action.