Postage

Distribution Overhead
Distribution overhead, also known as distribution cost or distribution expense, refers to the costs incurred in delivering a product to the customers. These costs are a key component of cost classification in businesses.
Franking Privilege
Franking privilege refers to the ability granted to members of Congress to send mail without postage charges. This privilege is used for official correspondence, updates to constituents, and other legislative matters.
Piece Rate
The charge incurred per individual piece of mail, distinct from distance-based charges. For example, mailing a first-class letter incurs the same cost regardless of the destination within the country.
Postage Meter
A postage meter is a machine widely used to print postage on envelopes and labels, substituting printed stamps. Authorized by postal services, these machines simplify mailing processes for businesses, ensuring accurate postage and reducing time spent dealing with individual stamps.
Postmark
A cancellation affixed on stamps by the U.S. Postal Service to indicate the use of postage. The date and place of mailing are usually indicated by the postmark and can be offered as evidence in a legal dispute of when and where something was mailed.

Accounting Terms Lexicon

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