Skoot, an e-commerce startup company, recently paid $300,000 to Widget Corp., a company that provides Internet services and products including cloud computing and online searches, to gain access to the data regarding online product searches. In the context of the costs of useful information, it can be concluded that Skoot incurred _____.

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13-12-2019
Business

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Skoot, an e-commerce startup company, recently paid $300,000 to Widget Corp., a company that provides Internet services and products including cloud computing and online searches, to gain access to the data regarding online product searches. In the context of the costs of useful information, it can be concluded that Skoot incurred _____.

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Answer:

Selling expenses

Explanation:

Selling expenses are the costs associated with distributing, marketing and selling a product or service.

Skoot wants data regarding online product searches which they would use to design their marketing campaigns and to gather customer insights.

The cost incurred is an expense that is termed selling expense, that would be classified as indirect expenses on their Income statement because they do not contribute directly to the making of products or delivery of a services.