Revenue, costs & profit · Core
Sales and marketing expense
Also called: S&M expense
ELI5
Costs associated with sales, marketing and related customer acquisition activity.
Used in conversation
“How are we defining sales and marketing expense in this deck?”
Pitch context
You will see “Sales and marketing expense” in financial models, budgets, board packs and investor materials when the discussion reaches revenue, costs & profit.
Why it matters: In revenue, costs & profit, different calculation boundaries, periods or accounting treatments can change the number and the decision.
Caution
Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16