How does a manufacturing company classify sales commissions?
A)as indirect labour
B)as product costs
C)as manufacturing overhead
D)as period costs

Question

Quizplus · Accepted Answer

Sales commissions are considered period costs because they are not directly associated with the production or manufacture of a product. Instead, they are a cost incurred in the selling and distribution process, which is considered a period cost.

How Does a Manufacturing Company Classify Sales Commissions