Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
Sales is the revenue of company while cost of sales is the cost of goods which are used to manufacture the units of products for sales purpose
Direct cost of sales is that cost which directly identifiable with sales like purchases etc.
total cost of sales may include indirect cost as well while direct cost of sales only included direct costs.
IF cost of goods is available and margin is also provided then sales can be calculated as follows: Sales = Cost of goods / margin of 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
Sales commission is a Cost of sales. But the salary of a sales agent is an expense.
Sales is the revenue of company while cost of sales is the cost of goods which are used to manufacture the units of products for sales purpose
Direct cost of sales is that cost which directly identifiable with sales like purchases etc.
If you know the food cost against sales, it is 100*(food cost)/sales. If you do not know food cost or sales, you cannot know the answer.
total cost of sales may include indirect cost as well while direct cost of sales only included direct costs.
Cost of sales influances the gross profit to decrease or increase as following formula: Gross profit = Sales - Cost of sales
IF cost of goods is available and margin is also provided then sales can be calculated as follows: Sales = Cost of goods / margin of sales
Divide Sales Price by 200% (ie 2). So cost is half of sales price.
Breakeven point = Fixed Cost / Contribution margin Contribution margin = (Sales - Variable cost) / Sales
Cost of Organisation's sales forces and sales management !
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.