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Question

Commission given on each unit of sales will fall under which of the following cost?

A Office & Administration Cost Correct Answer Incorrect Answer
B Selling Cost Correct Answer Incorrect Answer
C Factory Cost Correct Answer Incorrect Answer
D Manufacturing Cost Correct Answer Incorrect Answer
E Works Cost Correct Answer Incorrect Answer

Solution

Commission given on each unit of sales is an example of selling costs. Selling expenses are a type of operating expense and would not be factored into cost of goods sold or gross profit

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