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.
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 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.
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 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.
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.
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.
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 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.
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.
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.