InterviewSolution
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InterviewSolution
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Are Commissions A Cost Of Goods Sold Account Or An Expense? |
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Answer» Sales COMMISSIONS are a selling expense. Selling EXPENSES are reported on the income statement as part of the OPERATING expenses. Often the operating expenses will appear as selling, GENERAL and administrative expenses or SG&A. Sales commissions are not part of the COST of a product and therefore are not assigned to the cost of goods held in inventory or to the cost of goods sold. Sales commissions are a selling expense. Selling expenses are reported on the income statement as part of the operating expenses. Often the operating expenses will appear as selling, general and administrative expenses or SG&A. Sales commissions are not part of the cost of a product and therefore are not assigned to the cost of goods held in inventory or to the cost of goods sold. |
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