a small doubt in costing

wht ia da nature of the following expense:-

Sales commision to agents on the basis of units sold.

 

I know its a part of selling and distribution expenses but i want to know whether its a direct expense or a indirect.

Replies (17)

Indirect Expense....Just like trade discount.

As per me it is indirect expense as  sale commission is not associated with the cost of the product or bringing a item in to a saleable form.

Indirect Exp...

On the basis of units Cost of goods sold = Direct materials Direct labor Factory overhead (rent, factory salaries, depreciation, leases, utilities, etc.)

Commissions generally are paid on finished goods sold and are a percentage of the sales price generally categorized on the income statement under Selling, General, and Administrative (S,G,&A) expenses.

It is an indirect expense

indirect expense....

Sales commision to agents on the basis of units sold is an indirect expense.

 

Agreed wid all....its an Indirect Exp...

Obviously Indirect Expense....

INDIRECT EXPENSE.....!!

its a indirect exp.

its an indirect expense

indirect expense

yeah its indirect expenses..

Hi, since it is not related to the production of goods so it is an indirect expense.

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