Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
Sales commission is a variable cost because the amount of the account is subject to variation. Think about it: A used car salesman is paid a commission say of $500 for every car he sells for the month of October. If he sells only 2 cars, then the sales commission is $1000, If he sells a whopping 12 cars, then the sales commission is $6000!! Notice the variation in commission?? This is why it is a variable cost - because it is not a fixed cost, which you know regardless of what happens during the period.!
is salesmen commission apart of direct labor
Yes, period costs are non manufacturing costs
Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
No -- commission is Sales overhead cost.
Sales Commission varies with volume of sales that's why it is a variable cost as much the sales as much the sales commission, high sales high sales commission and vice versa.
Sales commission is a variable cost because the amount of the account is subject to variation. Think about it: A used car salesman is paid a commission say of $500 for every car he sells for the month of October. If he sells only 2 cars, then the sales commission is $1000, If he sells a whopping 12 cars, then the sales commission is $6000!! Notice the variation in commission?? This is why it is a variable cost - because it is not a fixed cost, which you know regardless of what happens during the period.!
is salesmen commission apart of direct labor
The typical commission for IT hardware sales depend on the cost of hardware sold. Hardware costing below $10,000 will yield 8 percent commission, $10,001 - $20,000 is equivalent to 10 percent commission, and higher than $20,000 will yield 13 percent commission.
Yes, period costs are non manufacturing costs
What is average sales commission percentage rate for training sales?
Sales commission is earned for selling a product of the company. If you have done all the hard work by yourself, you should not share the sales commission. However; if someone has helped you to achieve those sales, split the commission according to their input.
The typical commission rate for sales starts at about 5%, which usually applies to sales teams that have a generous base pay. The average in sales, though, is usually between 20-30%. What is a good commission rate for sales?
Variable cost would indicate that the overal commission wouldn't changed based on the volume of sales, so it should be a fixed cost instead.