How Would a 5% Sales Commission Paid to Sales Personnel

question 29

Multiple Choice

How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?

• A) Fixed, period cost.
• B) Fixed, product cost.
• C) Variable, period cost.
• D) Variable, product cost.
• E) Direct labor, product cost.

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Definitions:

Supply Increases

Supply increases refer to a situation in which the availability of a product or service in the market rises, which can be due to factors such as improved production methods or increased raw material availability.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.