§ 367.9120 Account 912, Demonstrating and selling expenses.

(a) This account must include the cost of labor, materials used and expenses incurred in promotional, demonstrating, and selling activities, except by merchandising, the object of which is to promote or retain the business of present and prospective customers of the service company and the companies within the holding company system that is not recorded in Accounts 416, Costs and expenses of merchandising, jobbing and contract work (§ 367.4160), or 930.1, General advertising expenses for associated companies (§ 367.9301). (b) This account must include the following labor items: (1) Demonstrating uses of services provided by companies within the holding company system. (2) Conducting cooking schools, preparing recipes, and related home service activities. (3) Exhibitions, displays, lectures, and other programs to promote the services provided by the service company or the companies within the holding company system. (4) Experimental and development work in connection with new and improved appliances and equipment, prior to general public acceptance. (5) Solicitation of new customers or of additional business from old customers, including commissions paid employees. (6) Engineering and technical advice to present or prospective customers in connection with promoting or retaining the use of services. (7) Special customer canvasses when their primary purpose is the retention of business or the promotion of new business. (c) This account must include the following materials and expenses items: (1) Supplies and expenses pertaining to demonstration and experimental and development activities. (2) Booth and temporary space rental. (3) Loss in value on equipment and appliances used for demonstration purposes. (4) Transportation, meals, and incidental expenses.