Stage 7 · Selling and delivering
CAS-15: Selling and Distribution Overheads
Samples, adverts, cartons and the van: what does it cost to win an order and deliver it?
What you will learn in CAS-15
- Selling vs distribution overheads (§4)
- Warranty, spreading and exclusions (§5)
- Sharing and presenting (§§6–8)
Chapters
- Getting the order, getting it there · Sort and add up the costs of selling and delivering (§§4.2, 4.3, 5.1, 5.4)
- The long campaign and the guarantee · Spread, include, exclude, share (§§5.1–5.8, 6, 7, 8)
- Spot the mistakes in the selling statement · Three mistakes are hiding (§§5.2, 5.3; CAS-5 §6.1)
Key terms
- Selling and distribution overheads (§§4.2, 4.3, 5.1, 5.4): Selling: the cost of looking for and winning orders (samples, adverts, sales staff). Distribution: the cost from packing to delivery (cartons, outward freight, warehousing). Both are part of cost of sales, not production.
- Measuring and sharing them (§§5.2, 5.3, 5.6–5.8, 6, 7, 8): Spread costs that help for a long time. Keep pretend costs, unusual costs, penalties and anything unrelated out. Link what you can directly; share the rest on the benefit each gets. Show them as a separate line in cost of sales.
Common questions
Are selling and distribution overheads part of cost of production?
No. They form part of cost of sales and are shown as a separate item (CAS-15 section 7; CAS-4).
CAS-15, Selling and Distribution Overheads. Checked against the standard in November 2026. Selvi Garments, the school order and every figure in this lesson are fictional. Read the official text on the ICMAI Cost Accounting Standards page ↗ before applying it to real work.