Is sales commission a period cost?
Understand the Problem
The question is asking whether sales commission is classified as a period cost. This involves understanding the definitions of different cost types in accounting, specifically distinguishing between product costs and period costs.
Answer
Yes.
The final answer is Yes, sales commissions are considered a period cost.
Answer for screen readers
The final answer is Yes, sales commissions are considered a period cost.
More Information
Sales commissions are classified as period costs because they are not directly involved in the production of goods. They are treated as operating expenses and recorded on the income statement in the period they are incurred.
Sources
- Is Sales Commission a Period Cost? - elevate.so
- Are sales commissions classified as a product cost or a period cost? - homework.study.com
- Product Costs and Period Costs - courses.lumenlearning.com
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