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Monitoring experience: expense analysis (Page 16)

Rajat gupta

Ton up Member
Hi All,

I have two questions on expense analysis:-
1. Why Commission are excluded from expense investigation?
2. Why marketing expenses include commission if it has to be excluded?

Can somebody please help. Thanks in advance!

Regards,
Rajat
 
Rajat, to help you with the answer to your first question, have you read the second paragraph on page 16 of Chapter 30 of ActEd's course notes?

2.I don't think it says marketing expenses include commission - but that they might relate to commission. However this sounds doubtful and not always true - eg you may spend more on marketing when you sell through a channel that doesn't require much commission. Hence I wouldn't worry about it too much.
 
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