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Is sales commission an expense or cost of sales?
Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
What is a selling expense?
A selling expense is an expenditure made in support of the sales effort. This might include advertising, cost of transportation for sales personnel, printing of sales and technical brochures, etc.
What is a flexible budget?
Definition A set of revenue and expense projections at various production or sales volumes. The cost allowances for each expense are able to vary as sales or production vary.
Is bad debt expenses considered a product cost?
Bad debt expense is a product cost, depends directly on sales.
Is sales commission expense a period cost?
Yes, period costs are non manufacturing costs
Is sales commission an expense or cost of sales?
Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
What accounts can be found in income statement?
Accounts found on an Income Statement are : Cost of Sales, Sales Rev., Selling Expense and Wage Expense
What is a selling expense?
A selling expense is an expenditure made in support of the sales effort. This might include advertising, cost of transportation for sales personnel, printing of sales and technical brochures, etc.
Is cost of sales or turnover the same as net sales?
Cost of sales is the expenses to earn sales so cost of sales and net sales are not same, formula for gross profit is as follows: Gross profit = Sales - Cost of sales
What is a flexible budget?
Definition A set of revenue and expense projections at various production or sales volumes. The cost allowances for each expense are able to vary as sales or production vary.
Rent expense cost of sales?
Rent expense is considered an overhead cost, not a cost of sales since it does not directly relate to the merchandise you are selling. Any prepaid rent (such as at the beginning of the month) should receive a journal entry debit to an account called prepaid rent, and at the end of the month should be credited to rent expense. Hope this helps.
Is bad debt expenses considered a product cost?
Bad debt expense is a product cost, depends directly on sales.
Is cost of goods sold an operating expense?
Cost of goods sold is opening stock plus purchases of inventories and other carriage costs less closing stock. Cost of sales therefore is not an operating expense...
Is sales commission expense a period cost?
Yes, period costs are non manufacturing costs
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
What is a fixed expense?
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
Is sales return an expense?
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
