Commissions expense and advertising expense are included as part of manufacturing overhead and treated as a product cost.Instead of being treated as part of the product cost (included in inventory and,eventually,cost of goods sold),nonmanufacturing costs such as advertising expense and commissions expense are expensed during the period in which they are incurred.

Question

Quizplus · Accepted Answer

Commissions expense and advertising expense are not included in the manufacturing overhead and are not treated as part of the product cost. They are instead expensed during the period in which they are incurred, as nonmanufacturing costs.

Commissions Expense and Advertising Expense Are Included as Part of Manufacturing