Sales commissions are direct expenses. Direct expenses are those that used to directly run a business like labor, materials products services and more. Indirect expenses are the costs of doing business and include things like rent, insurance, depreciation and more.
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is salesmen commission apart of direct labor
no it is not deirect expenses
total cost of sales may include indirect cost as well while direct cost of sales only included direct costs.
Direct cost of sales are those costs that exists as a result of selling the product. Indirect costs are costs that are there whether the product sells or not.
Indirect costs are costs that are not directly accountable to a cost object (such as a particular function or product). Indirect costs may be either fixed or variable. Indirect costs include taxes. 1. Salary & Bonus 2. Rent Paid 3. Advertisement & Publicity 4. Electricity Charges 5. Traveling Expenses 6. Telephone Bill 7. Printing & Stationary 8. Postage & Telegram 9. Computer.