LECTURE 7-Trade Statistics (2)

1. LECTURE 7: DISTRIBUTION COST STATISTICS

STATISTICS DEPARTMENT
TRADE STATISTICS
LECTURE 7:
DISTRIBUTION COST STATISTICS
By Ulugbek KAMALETDINOV
Tashkent
‘26
#07

2. 7.1. Essence, Economic Content, and Classification of Distribution Costs 7.2. Composition and Structure of Selling Expenses in

LECTURE OUTLINE
7.1. Essence, Economic Content, and
Classification of Distribution Costs
7.2. Composition and Structure of Selling
Expenses in Trade and Public Catering
7.3. Absolute and Relative Indicators of
Distribution Costs (Level, Structure)
7.4. Statistical Methods for Analyzing the
Dynamics and Factors of Cost Changes

3.

CORE LITERATURE (Required Reading)
➢ Anderson D.R., Sweeney D.J., Williams T.A., et al. Statistics for Business
& Economics. – 14th Edition. – Boston: Cengage Learning. (Available in
PDF in the University ARM)
➢ Lind D.A., Marchal W.G., Wathen S.A. Statistical Techniques in Business
& Economics. – 19th Edition. – New York: McGraw-Hill, 2024. – 874
p. (Available in PDF in the University ARM)
ADDITIONAL ACADEMIC TEXTBOOKS AND STUDY GUIDES
➢ G'oyibnazarov B.K. et al. Savdo statistikasi fanidan ma'ruzalar to'plami. –
T.: "Kadrlar malakasini oshirish va statistik tadqiqotlar instituti", 2025. –
142 b. (Available in PDF in the University ARM)
➢ United Nations, Department of Economic and Social Affairs, Statistics
Division. Manual on Principal Indicators for Business and Trade Statistics,
Volume 1 and Volume 2 (Studies in Methods, Series F No. 126). – New
York: United Nations, 2024-2026. (Available in PDF in the University ARM)
➢ United Nations Statistical Commission. Handbook on Integrating Business
and Trade Statistics (HIBTS). – New York: United Nations, 2025.
➢ Doane D.P., Seward L.E. Applied Statistics in Business and Economics. –
6th Edition. – McGraw-Hill Education.
➢ Kaur G., Sharma S., Sareen R. Taxmann's Business Statistics [UGCF |
NEP]. – 2nd Edition. – Taxmann Publications, 2025.
➢ UN Trade and Development (UNCTAD). Trade and Development Report. –
Geneva: UNCTAD (annual).
3

4.

Sources:
www.gov.uz – Government portal of the Republic of Uzbekistan
www.lex.uz – National database of legislation of the Republic of Uzbekistan
www.stat.uz – Official website of the National Statistics Committee of the Republic of Uzbekistan
The London School of Economics and Political Science (LSE) –
https://www.lse.ac.uk/resources/calendar/courseGuides/ST/2024_ST102.htm
Università di Bologna – https://www.unibo.it/en/study/course-units-transferable-skillsmoocs/course-unitcatalogue?codiceMateria=00914&annoAccademico=2024&codiceCorso=5901&single=True&se
arch=True
University of Texas at Austin –
https://utdirect.utexas.edu/apps/student/coursedocs/nlogon/download/6656900/
UN Comtrade Database – https://comtrade.un.org/ – United Nations international trade statistics
database
World Bank Open Data – https://data.worldbank.org/ – Global development data
UNCTADstat – https://unctadstat.unctad.org/ – Trade and development statistics
WTO Data Portal – https://data.wto.org/ – World Trade Organization statistics
UN Data – https://data.un.org/ – United Nations statistical data portal
International Monetary Fund Data – https://www.imf.org/en/Data – IMF databases
OECD.Stat – https://stats.oecd.org/ – OECD statistical data
ILOSTAT – https://ilostat.ilo.org/ – International Labour Organization statistics
Eurostat – https://ec.europa.eu/eurostat – European Union statistics
4

5.

"We had to keep expenses to a minimum.
That is where it started. Our money was
made by controlling expenses."
— Sam Walton, Founder of Walmart

6.

Essence, Economic Content,
and Classification of
Distribution Costs
7.1.

7. Introduction — Distribution Costs

Directly affects
profitability —
lower costs mean
higher margins
Business Perspective:
Imagine two retail stores selling the same products at
the same prices. One store is highly profitable; the
other is barely breaking even.
What explains the difference?
The answer often lies in distribution costs — the
costs incurred in moving goods from producers to
consumers.
Key component of
economic analysis
— contributes to
GDP calculation
Core Function:
Distribution costs are the lifeblood of trade economics.
They represent the difference between the purchase
price of goods and the final selling price.
"The ability to control costs is often the difference
between success and failure in a competitive market."
Why It
Matters?
Reflects
operational
efficiency — high
costs may indicate
waste or poor
management
Influences pricing
decisions — cost
control enables
competitive pricing

8. What Are Distribution Costs?

Definition: Distribution costs (tarqatish xarajatlari) are the costs incurred by trading
enterprises in the process of moving goods from producers to consumers.
They represent expenses associated with:
Activity
Description
Purchasing goods
Costs of acquiring goods from suppliers
Transporting goods
Costs of moving goods from suppliers to
warehouses and stores
Storing goods
Costs of holding goods in inventory
(warehouse, insurance)
Selling goods
Costs of displaying, promoting, and selling to
customers
Managing the enterprise
Administrative and overhead costs

9. The Economic Content of Distribution Costs

1. Productive (Necessary) Costs — Add Value:
Cost Type
Value Added
Transportation costs
Make goods available where they are wanted
Storage costs
Make goods available when they are wanted
Packaging costs
Protect goods and facilitate handling
These costs are sometimes called
"net costs" — they do not change
physical properties but add time
and place utility.
2. Unproductive (Redundant) Costs — Do Not Add Value:
Important: The distinction
helps enterprises identify
opportunities for cost
reduction.
Cost Type
Description
Advertising and promotion
Do not change the product but may be necessary
Administrative costs
Costs of managing the enterprise
Costs of unsold goods
Costs associated with goods that remain unsold
Distribution costs have a dual economic nature

10. Classification of Distribution Costs — By Economic Element

This classification is based on the economic nature of the cost — what the enterprise pays for.
Cost Element
Description
Examples
Labour Costs
Wages, salaries, bonuses, social security
Sales staff, warehouse workers, managers
Material Costs
Materials used in operations
Packaging, stationery, cleaning supplies
Energy Costs
Electricity, heating, cooling
Lighting, refrigeration
Depreciation
Wear and tear on fixed assets
Buildings, equipment, vehicles
Rent
Costs of renting premises
Store rent, warehouse rent
Services
External services
Security, cleaning, IT support
Transport Costs
Transporting goods
Fuel, vehicle maintenance, shipping
Taxes and Fees
Payments to government
Property tax, license fees
Other Costs
Not elsewhere classified
Insurance, training costs

11. Classification of Distribution Costs — By Type, Function, and Behavior

By Cost Type:
By Function (Activity):
By Cost Behavior:
• Product Costs
• Directly associated with goods; included in
inventory value
• Period Costs
• Expensed in the period incurred (selling,
administrative)
• Purchasing Costs
• Purchase department salaries, order
processing
• Storage Costs
• Warehouse rent, insurance, inventory
management
• Transport Costs
• Freight, fuel, vehicle maintenance
• Sales Costs
• Sales staff wages, advertising, commissions
• Administrative Costs
• Management salaries, office supplies,
accounting
• Fixed Costs:
• Do not change with activity (rent, salaries)
• Variable Costs:
• Change proportionally (freight, commissions)
• Semi-variable Costs:
• Partially fixed, partially variable

12. The Relationship Between Distribution Costs and Sales

Central Relationship: The cost-to-sales ratio — the proportion of sales
revenue consumed by distribution costs.
Distribution Cost Ratio = (Total Distribution Costs / Total Sales) ×
100
Example:
A store has distribution costs of 150,000,000 soums and sales of
1,000,000,000 soums.
Distribution cost ratio = (150,000,000 / 1,000,000,000) × 100 = 15%
This means that 15% of sales revenue is spent on distribution costs.
Interpretation:
➢Lower ratio = greater efficiency (lower costs per unit of sales)
➢Higher ratio = lower efficiency (higher costs per unit of sales)
➢Optimal ratio depends on industry, format, and competitive conditions

13.

Composition and Structure of
Selling Expenses in Trade
and Public Catering
7.2.

14. Composition of Selling Expenses in Trade

Selling expenses (sotish xarajatlari) are the costs specifically associated with the sale of goods.
A. Sales Staff Costs:
B. Sales Promotion Costs:
Cost Type
Description
Cost Type
Description
Wages and Salaries
Base pay for sales
staff
Advertising
Media advertising
In-Store Promotions
Displays, sampling,
demonstrations
Digital Marketing
Online advertising, social
media
Printed Materials
Flyers, catalogues,
brochures
Promotional Events
In-store events
Bonuses and
Commissions
Social Security
Contributions
Training Costs
Uniforms
Performance-based
compensation
Employer
contributions
Costs of training
sales staff
Costs of staff
uniforms

15. Composition of Selling Expenses in Trade

Selling expenses (sotish xarajatlari) are the costs specifically associated with the sale of goods.
C. Store Operating Costs:
D. Selling Equipment Costs:
Cost Type
Description
Cost Type
Description
Store Rent
Rent for retail
premises
POS Systems
Point-of-sale hardware
and software
Store Maintenance
Cleaning, repairs
Display Equipment
Store Utilities
Electricity, heating,
water
Shelving, display cases,
signage
Checkout Equipment
Barcode scanners,
payment terminals
Other Sales Equipment
Weight scales, price
labelers
Security
Insurance
Security services
and systems
Insurance for
premises and
contents

16. Composition of Selling Expenses in Trade

Selling expenses (sotish xarajatlari) are the costs specifically associated with the sale of goods.
E. Logistics Costs (Sales-Related):
Cost Type
Description
Last-Mile Delivery
Costs of delivering goods to customers
Order Processing
Costs of processing sales orders
Packing Costs
Costs of packing goods for customers

17. Composition of Distribution Costs in Public Catering

•Raw Materials
•Cost of food ingredients and beverages
•Kitchen Supplies
•Disposables, spices, cleaning supplies
•Perishable Losses
•Spoilage and waste of food
A. Food and
Beverage Costs:
B. Kitchen and
Service Staff Costs:
•Cooks and Chefs
•Wages for food preparation staff
•Service Staff
•Wages for waiters, servers, hostesses
•Kitchen Assistants
•Wages for assistants and cleaners
•Kitchen Equipment
•Ovens, stoves, refrigerators,
dishwashers
•Cooking Utensils
•Pots, pans, cutlery, plates, glasses
•Maintenance
•Repairs and maintenance
D. Dining Room
Costs:
•Dining Room Furnishings
•Tables, chairs, tableware, linen
•Dining Room Maintenance
•Cleaning, upkeep
•Music and Ambiance
•Background music, decor
C. Food Preparation
Equipment Costs:
Public catering (restaurants, cafeterias, canteens) has a similar but distinct cost structure.
•Health and Safety
•Compliance with food safety
regulations
•Licenses and Permits
•Operating licenses
E. Regulatory Costs:

18. Cost Structure Analysis

Cost structure analysis examines the composition of distribution costs — the relative shares of
different cost categories.
Indicator
Formula
Labour Cost Share
(Labour Costs / Total Distribution Costs) × 100
Material Cost Share
(Material Costs / Total Distribution Costs) × 100
Depreciation Share
(Depreciation / Total Distribution Costs) × 100
Rent Share
(Rent / Total Distribution Costs) × 100
Other Cost Share
(Other Costs / Total Distribution Costs) × 100

19. Example of Cost Structure

Cost Category
Amount (soums)
Share (%)
Labour Costs
50,000,000
33.3%
Rent
30,000,000
20.0%
Utilities
15,000,000
10.0%
Depreciation
10,000,000
6.7%
Transport
20,000,000
13.3%
Advertising
10,000,000
6.7%
Other Costs
15,000,000
10.0%
Total
150,000,000
100%

20. Cost Structure Across Trade Formats

The cost structure varies significantly across trade formats:
Cost
Category
Supermarket
Specialty
Store
ECommerce
Public
Catering
Labour
High
High
Low
(warehouse)
Very High
Rent
High
High
Very Low
High
Transport
Moderate
Moderate
Very High
Low
Advertising
Moderate
Moderate
High
Low
Technology
Moderate
Low
Very High
Low
Raw
Materials
Low
Low
Low
Very High
Explanation:
Supermarkets: High labour and rent costs,
but benefit from economies of scale
Specialty stores: High labour costs
(knowledgeable staff), high rent (prime
locations)
E-commerce: Low labour and rent, but high
transport and technology costs
Public catering: Very high labour (service
staff) and raw materials costs

21.

Absolute and Relative
Indicators of Distribution Costs
7.3.

22. Absolute Indicators of Distribution Costs

Definition: Absolute indicators measure the total value or amount of distribution costs.
A. Total Distribution Costs: The sum of all distribution costs incurred during a period.
B. Distribution Costs by Category: The sum of costs in each specific category (labour, rent, transport,
etc.).
C. Distribution Costs per Unit:
Indicator
Formula
Description
Cost per Unit Sold
Total Distribution Costs / Number of Units Sold
Average cost per product unit
Cost per Transaction
Total Distribution Costs / Number of Transactions
Average cost per sales
transaction
Cost per Customer
Total Distribution Costs / Number of Customers
Average cost per customer
Total Distribution Costs / Sales Area
Average cost per unit of
space
Total Distribution Costs / Number of Employees
Average cost per employee
Cost per Square Metre
Cost per Employee

23. Relative Indicators of Distribution Costs

Relative indicators express distribution costs relative to other variables, typically sales.
A. Distribution Cost Ratio (Level of Costs):
Distribution Cost Ratio = (Total Distribution Costs / Total Sales) × 100
The most important relative indicator — also called the cost-to-sales ratio or expense ratio.
B. Cost per Sales by Category:
Indicator
Formula
Labour Cost Ratio
(Labour Costs / Sales) × 100
Rent Cost Ratio
(Rent Costs / Sales) × 100
Transport Cost Ratio
(Transport Costs / Sales) × 100
Advertising Cost Ratio
(Advertising Costs / Sales) × 100
C. Gross Margin Ratio:
Gross Margin Ratio = ((Sales − Cost of Goods Sold) /
Sales) × 100
D. Efficiency Ratio:
Efficiency Ratio = (Distribution Costs / Gross Margin) ×
100
This indicates the proportion of gross margin consumed by
distribution costs.

24. Key Takeaways!

1. The material-technical base of trade encompasses all
physical assets: buildings, equipment, vehicles, and
other fixed assets.
2. Trade facilities can be classified by function (retail,
wholesale, storage), ownership, size, and product
specialization.
3. Objectives of fixed asset statistics include measuring
value, analyzing composition, monitoring condition,
assessing utilization intensity, and informing policy.
4. Fixed asset valuation can be based on historical cost,
replacement cost, book value, market value, or present
value — each with different advantages and limitations.
5. Depreciation is the systematic allocation of asset cost
over its useful life. Common methods include straightline and declining balance.

25. Key Takeaways!

6. Key indicators of fixed assets include value indicators,
condition indicators (depreciation rate, renewal rate),
and structure indicators (shares by type).
7. Provision indicators measure availability of space and
equipment relative to operations: area per employee,
equipment per store, etc.
8. Intensity indicators measure how intensively space and
equipment are used: sales per square metre, sales per
POS system, etc.
9. Efficiency analysis examines how effectively fixed
assets generate output using indicators like fixed asset
turnover and return on assets.
10.Factor analysis decomposes changes in efficiency into
the contributions of different factors, helping identify
drivers of performance.

26. THANKS!

Any questions?
26
@UlugbekMK

27. Practical Tasks

28. Methodological Guidelines

Submission Format: Each task should be completed on a separate Excel
worksheet with a title and initial data.
Formatting: Use number formatting (thousands separators, percentages,
decimals).
Conclusions: After each calculation, add a text conclusion (2–3 sentences)
summarizing the key findings.
Data Sources: Data are drawn from the official portal of the National
Statistics Committee of the Republic of Uzbekistan (www.stat.uz), the
SIAT database (siat.stat.uz).

29. Task 1: Classification of Trade Facilities by Function and Ownership

Objective: To consolidate understanding of the classification of trade facilities by function and ownership.
Initial Data (Uzbekistan, 2025):
Indicator
Value
Number of retail trade enterprises (January–
February 2026)
87,614
Large enterprises
353
Small enterprises and micro-firms
87,261
Share of small business in retail turnover, %
81.1
Assignment:
1. Classify retail trade enterprises by function
(retail, wholesale, storage, mixed, service).
2. Classify by ownership type (owned, leased,
jointly used, state-owned).
3. Calculate the share of large enterprises and
small businesses in total retail enterprises.
4. Justify each classification with reference to
the lecture framework.
Excel Formulas:
•Share of large enterprises: =(B3/B2)*100
•Share of small businesses: =(B4/B2)*100

30. Task 2: Analysis of Fixed Assets Investment Structure

Objective: To analyse the structure of investments in fixed assets by type.
Initial Data (Uzbekistan, 2024, bln UZS):
Type of Fixed Asset
Investment Value
Residential buildings
40,287.9
Non-residential buildings
91,172.9
Other facilities
87,239.2
Land improvement
1,693.7
Machinery and equipment, total
241,819.0
Transportation equipment
36,700.8
ICT equipment
7,970.3
Other machinery and equipment
191,802.0
Assignment:
1. Calculate total investment in fixed assets.
2. Calculate the share of each type in total
investment.
3. Construct a pie chart illustrating the
distribution.
4. Draw conclusions regarding the composition
of fixed asset investments.
Excel Formulas:
•Total: =SUM(B2:B9)
•Share: =(B2/$B$10)*100

31. Task 3: Calculation of Depreciation Rate and Renewal Rate

Objective: To master the calculation of fixed asset condition indicators.
Initial Data (Trade enterprise, annual data):
Indicator
Value, mln UZS
Historical cost of fixed assets
500
Accumulated depreciation
200
Additions (new fixed assets)
75
Closing value of fixed assets
550
Assignment:
1. Calculate the depreciation rate.
2. Calculate the renewal rate.
3. Interpret the results: what proportion of
fixed assets has been depreciated? What
proportion is new?
Excel Formulas:
•Depreciation rate: =(B3/B2)*100
•Renewal rate: =(B4/B5)*100

32. Task 4: Calculation of Provision Indicators

Objective: To calculate provision indicators for trade space.
Initial Data (Trade enterprise, annual data):
Indicator
Value
Sales area, m²
500
Warehouse area, m²
300
Total area, m²
900
Number of employees, persons
25
Number of customers, thousand
120
Average inventory, mln UZS
450
Assignment:
1. Calculate sales area per employee.
2. Calculate sales area per customer.
3. Calculate storage area per employee.
4. Calculate total area per employee.
5. Calculate warehouse capacity (warehouse area per unit of
inventory).
Excel Formulas:
➢ Sales area per employee: =B2/B5
➢ Sales area per customer: =B2/(B6*1000)
➢ Storage area per employee: =B3/B5
➢ Total area per employee: =B4/B5
➢ Warehouse capacity: =B3/B7

33. Task 5: Calculation of Intensity of Space Utilization

Objective: To calculate intensity indicators for trade space utilization.
Initial Data (Trade enterprise, annual data):
Indicator
Value
Annual turnover, mln UZS
1,000
Sales area, m²
500
Total area, m²
900
Profit, mln UZS
150
Average inventory, mln UZS
450
Number of customers, thousand
120
Assignment:
1. Calculate sales per square metre (retail productivity).
2. Calculate profit per square metre.
3. Calculate inventory per square metre (stock density).
4. Calculate customer count per square metre (footfall
density).
5. Calculate turnover per total area.
6. Interpret the results: how efficient is space utilization?
Excel Formulas:
➢ Sales per m²: =B2/B3
➢ Profit per m²: =B4/B3
➢ Inventory per m²: =B5/B3
➢ Customer count per m²: =B6/B3
➢ Turnover per total area: =B2/B4

34. Task 6: Calculation of Intensity of Equipment Utilization

Objective: To calculate intensity indicators for equipment utilization.
Initial Data (Trade enterprise, annual data):
Indicator
Value
Annual turnover, mln UZS
1,000
Number of transactions, thousand
800
Number of checkouts
6
Number of POS systems
8
Cost of goods sold, mln UZS
650
Average inventory in warehouse,
mln UZS
200
Assignment:
1. Calculate transactions per checkout.
2. Calculate sales per POS system.
3. Calculate inventory turns per warehouse.
4. Interpret the results: how efficient is equipment utilization?
Excel Formulas:
➢ Transactions per checkout: =(B3*1000)/B4
➢ Sales per POS system: =B2/B5
➢ Inventory turns: =B6/B7

35. Task 7: Calculation of Fixed Asset Turnover

Objective: To calculate and interpret fixed asset turnover.
Initial Data (Trade enterprise, annual data):
Indicator
Value
Annual turnover, mln UZS
1,000
Average fixed assets, mln UZS
250
Excel Formulas:
•Fixed asset turnover: =B2/B3
•Comparison: =B4-3.5
Assignment:
1. Calculate fixed asset turnover.
2. Interpret the result: how many soums of sales are
generated per soum of fixed assets?
3. Compare with a hypothetical industry benchmark of 3.5.
What does the comparison suggest?

36. Task 8: Factor Analysis of Fixed Asset Turnover

Objective: To conduct a factor analysis of changes in fixed asset turnover.
Initial Data:
Indicator
Year 1
Year 2
Turnover, mln UZS
1,000
1,200
Fixed assets, mln UZS
250
300
Sales area, m²
500
550
Assignment:
1. Calculate sales per square metre for each year.
2. Calculate square metres per fixed asset for each year.
3. Verify that: Fixed Asset Turnover = (Sales per m²) × (m² per
Fixed Asset).
4. Interpret the results: what drove the change in fixed asset
turnover?
Excel Formulas:
➢ Sales per m² Year 1: =B2/B4
➢ Sales per m² Year 2: =C2/C4
➢ m² per Fixed Asset Year 1: =B4/B3
➢ m² per Fixed Asset Year 2: =C4/C3
➢ Verification: =B7*B8 (should equal fixed
asset turnover)

37. Task 9: Analysis of Fixed Asset Dynamics

Objective: To analyse the dynamics of fixed assets over time.
Initial Data (Trade enterprise, annual data):
Year
Fixed Assets, mln UZS
2021
200
2022
220
2023
250
2024
280
2025
300
Assignment:
1. Calculate chain absolute increments.
2. Calculate chain growth rates, %.
3. Calculate the average annual growth rate.
4. Draw conclusions regarding the dynamics of fixed assets.
Excel Formulas:
➢ Chain absolute increment: =B3-B2
➢ Chain growth rate: =(B3/B2)*100
➢ Average annual growth: =(B6/B2)^(1/4)*100

38. Task 10: Comprehensive Analysis of Material-Technical Base Efficiency

Objective: To integrate acquired skills for a comprehensive assessment of material-technical base efficiency.
Initial Data (Trade enterprise, annual data):
Indicator
Value
Annual turnover, mln UZS
1,000
Average fixed assets, mln UZS
250
Sales area, m²
500
Number of employees, persons
25
Profit, mln UZS
150
Cost of goods sold, mln UZS
650
Average inventory, mln UZS
450
Assignment:
1. Calculate fixed asset turnover.
2. Calculate sales per square metre.
3. Calculate profit per square metre.
4. Calculate sales area per employee.
5. Calculate the integrated efficiency index if turnover
increased by 20% and fixed assets increased by 15%.
6. Draw conclusions regarding the overall efficiency of the
material-technical base.
Excel Formulas:
➢ Fixed asset turnover: =B2/B3
➢ Sales per m²: =B2/B4
➢ Profit per m²: =B5/B4
➢ Sales area per employee: =B4/B6
➢ Integrated efficiency index: =1.20/1.15
➢ Inventory per m²: =B8/B4