Legal Definitions - distribution cost

Definition: Any cost incurred in marketing a product or service, such as advertising, storage, and shipping.

Examples:

• Advertising expenses for a new product launch
• Costs of storing and transporting goods to retail stores
• Packaging and labeling costs

These examples illustrate how distribution costs are expenses incurred in the process of getting a product or service to the customer. They are not directly related to the production of the product, but rather to the marketing and distribution of it. For example, advertising expenses are incurred to promote the product to potential customers, while storage and transportation costs are incurred to physically move the product from the manufacturer to the retail store or customer.