Advertising Costs

Dictionary Says

Definition of 'Advertising Costs '


A category included in financial accounting to represent expenses associated with promoting an industry, entity, brand, product name, or specific products or services in order to stimulate a desire to buy the entity's products or services. Advertising costs include space in print and online venues, broadcast time, radio time and direct mail advertising. Advertisng costs will in most cases fall under SG&A expenses on a company's income statement.
Investopedia Says

Investopedia explains 'Advertising Costs '


The American Institute of Certified Public Accountants' (AICPA) Accounting Standards Executive Committee (AcSEC) released a Statement of Position (SOP 93-7) in 1993 establishing standards for companies that incur advertising costs. SOP 93-7 concluded that advertising costs should be recorded as expenses rather than assets: "Reporting the costs of all advertising as expenses in the periods in which those costs are incurred, or the first time the advertising takes place."
comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center