Advertising costs

Advertising costs,

Definition of Advertising costs:

  1. Money paid for company or business exposure and marketing.

  2. Advertising costs are sometimes recorded as a prepaid expense on the balance sheet and then moved to the income statement when sales that are directly related to those costs come in. For a company to record advertising expenses as an asset, it must have reason to believe those specific expenses are tied to specific future sales. Then, as those sales occur, those advertising expenses are moved from the balance sheet (prepaid expenses) to the income statement (SG&A).

  3. Advertising costs are a type of financial accounting that covers expenses associated with promoting an industry, entity, brand, product, or service. They cover ads in print media and online venues, broadcast time, radio time, and direct mail advertising. Advertising costs will in most cases fall under sales, general, and administrative (SG&A) expenses on a company's income statement.

How to use Advertising costs in a sentence?

  1. Advertising costs are sometimes recorded as a prepaid expense on the balance sheet and then moved to the income statement when sales relate to those costs come in.
  2. Advertising costs are a category in financial accounting associated with promoting an industry, entity, brand, product, or service.

Meaning of Advertising costs & Advertising costs Definition