Asked by
Rogelen Villafuerte
on Nov 13, 2024
Verified
Sales commissions are classified as
A) overhead costs
B) period costs.
C) product costs.
D) indirect labor.
Period Costs
Expenses that are not directly tied to the production of goods and are expensed in the period they are incurred.
Sales Commissions
Payments made to salespeople, typically calculated as a percentage of the sales they generate.
Overhead Costs
Expenses related to the operation of a business that cannot be directly tied to a specific product or service, such as utilities or administrative salaries.
- Differentiate between costs associated with production (including direct materials, direct labor, and manufacturing overhead) and costs not related to manufacturing (also known as period costs).
Verified Answer
ZZ
Learning Objectives
- Differentiate between costs associated with production (including direct materials, direct labor, and manufacturing overhead) and costs not related to manufacturing (also known as period costs).