What expenses do promotional gifts fall under?

Expenses incurred for promotional gifts are generally classified under marketing expenses or business promotion costs.

Marketing Expenses: Promotional gifts are items given away to promote products or services, and the associated costs are categorized as part of a company's marketing expenses. Marketing expenses encompass costs incurred during market promotion and product sales, including advertising fees, promotional expenses, and marketing expenditures. Promotional gift expenses, as a component of this category, aim to enhance sales effectiveness.

Business Promotion Expenses: As a means to attract consumers and deepen brand impressions, promotional gift expenses also fall under business promotion expenses. Business promotion expenses refer to the costs incurred by a company during business operations to expand its visibility and enhance its brand image.