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Hi
In business Sales relate to how much you advertise so therefore it would normally be regarded as Direct Expenses.
What might be cofusing is you may feel what if you get no business from that Advertisement. Then it is an overhead. If a business is been run correctly they update and change their advetising all the time if it is not increasing sales or they stop all together , so it is directly linked to the movement of Sales.
Just a quick note . Just because Sage has a code somewhere does not always mean it is in the correct place for every business. COA are set up to suit individual companyies for example so you do not always have to except the default.
In my Accountancy Bookkeeping Business . Heat and Light is an overhead
but
Manufacturing Business making Windows and using heavy machinery using a lot of electricy . An element of it would be cost of Sales , and there would be a Fised element for the office Electricty.
Telephone costs are another one. I could argue that my telephone costs have a direct link to sales the more telephone calls I make the more I can charge my client for .
Yes there is a fixed element but there is also the cost of say ringing clients which you would be invoicing them for and therefore it would be a cost of Sale.
If you were a call Centre , Telephone would not be a overhead it would be a cost of Sale for the Company
You need to look at each company to understand why different costs would come under Cost of Sales , Direct Costs or Overheads
I hope this helps in your understanding. You may not need to know this level for your exams , but it was just to explain why sage has codes where it has codes
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