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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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Q: Are sales commissions a direct or indirect expense?
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Is sales commission a direct expense?

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


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What are direct and indirect expenses?

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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.


What is the difference between direct tax and indirect ta?

Direct taxes are levied directly on individuals or organizations and cannot be transferred to another party, such as income tax or property tax. Indirect taxes are imposed on goods and services and are ultimately paid by the consumer, like sales tax or value-added tax.