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Note 4 is for the administrative expenses sometimes called General and administrative expenses while node pipe is for the distribution cost node 6. is for finance cost which is the interest and other charges incurred in connection with borrowing funds distribution costs are those expenses which are directly related to the sale or to the selling of goods hence it is also known as selling expenses so the storage space rental is one of the distribution cost because store is the place where entities sell their goods or merchandise of course the rental of office space is not a distribution cost but part of administrative expenses in node number four the salaries and wages of office or administrative employees are considered administrative expenses but the salaries and wages of store employees are distribution costs similarly all other expenses off and in the store like utilities telephone supplies depreciation and even Insurance should be presented as distribution costs while those expenses
