How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?
A) Fixed, period cost.
B) Fixed, product cost.
C) Variable, period cost.
D) Variable, product cost.

Question

Quizplus · Accepted Answer

A sales commission is a variable cost because it changes with the level of sales. It is also a period cost because it is not directly tied to the production process.

How Would a 5% Sales Commission Paid to Sales Personnel