The expenses which are incurred to increase the demand of the product are known as

Selling expenses
Distribution expenses
Both A and B
Neither A nor B

The correct answer is: A. Selling expenses

Selling expenses are the costs incurred in selling a product or service. They include costs such as advertising, sales commissions, and marketing. Selling expenses are necessary to create demand for a product or service and to persuade customers to buy it.

Distribution expenses are the costs incurred in getting a product or service to the customer. They include costs such as warehousing, transportation, and order processing. Distribution expenses are necessary to make a product or service available to customers.

Both selling expenses and distribution expenses are necessary to sell a product or service. However, only selling expenses are incurred to increase the demand for a product. Distribution expenses are incurred to make a product or service available to customers, but they do not directly increase demand.

Here are some examples of selling expenses:

  • Advertising
  • Sales commissions
  • Marketing
  • Trade shows
  • Sales training
  • Customer service

Here are some examples of distribution expenses:

  • Warehousing
  • Transportation
  • Order processing
  • Inventory management
  • Customer returns

I hope this helps! Let me know if you have any other questions.