Best Answer

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.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Are sales commissions a direct or indirect expense?
Write your answer...
Still have questions?
magnify glass
Related questions

Are sales commissions a direct labor cost?

is salesmen commission apart of direct labor

Is sales commission a direct expense?

no it is not deirect expenses

What is the difference between direct cost of sales and total cost of sales?

total cost of sales may include indirect cost as well while direct cost of sales only included direct costs.

Direct and Indirect contacts in management?

Direct Contacts are the individuals who are the first recipient of the information and Indirect Contacts are the ones who receive the information through the Direct Contacts. Indirect Contacts in sales is also termed as a Trickle Down Effect.

Cadbury plc direct and indirect competiters?

a indirect competitor could b someone that doesn't provide the service your business provides. A direct competitor is someone that sales what your company sales and could possibly sale the product better.

Direct cost of sales?

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.

What is the difference between direct and indirect taxes?

A direct tax is one that is taken directly from the individual, such as income tax. Indirect taxes, such as sales tax, are collected by merchants and taken from the consumer. Indirect taxes also lead to inequalities while direct taxes do not.

What are direct and indirect expenses?

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.

Are sales commissions direct costs?

Sales commission has no relationship with manufacturing of products that’s why it is not a direct cost as direct costs are those costs which related to manufacturing of products like raw material, labor etc.

The difference between direct taxs and indirect taxs and give examples of each?

The difference between direct taxes and indirect taxes with examples is that direct taxes come directly from a person's income or personal property taxes. Indirect taxes comes from sales and excise taxes.

Are sales commissions classified as cost of good sold?

Traditional financial/absorption accounting defines cost of goods sold as (in manufacturing): Direct materials Direct labor Factory overhead (rent, factory salaries, depreciation, leases, utilities, etc.) Cost of goods sold Commissions generally are paid on finished goods sold and are a percentage of the sales price. For example, SP = $100; commission = 5%; commission $ = $5.00. This is a selling expense and generally is categorized on the income statement under Selling, General, and Administrative (S,G,&A) expenses. Commissions therefore are not considered cost of goods sold.

Does customs duty come under direct expense?

I was look for the answer to this very same question! And I found it: "Customs duty comes in two types: Import Duty & Export Duty. Duty paid on goods imported from Abroad is known as Import Duty and is debited to the Trading A/c but Duty paid on goods exported expense connected with sales, is debited to profit and loss account, so import duty on goods purchased from abroad is a direct expense and export duty on goods sold is indirect expense."