Chapter 22, Problem 8DQ

To determine

Introduction:

A company incurs expenses in order to sell its products to the existing and potential customer. These expenses are accounted for an estimated based on the sales estimation and the incentives to be given to the sales personnel. Further, companies in order to expand undertake long term investments known as capital expenditure.

Requirement 1:

To State:

The explanation for selling expenses

To determine

Requirement 2:

To State:

The explanation for capital expenditure.