Are commissions a cost of goods sold account or an expense?
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.
Learn more about the Income Statement.
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All commission are expenses as been said it could be selling commission or discount commision to the customer so it is an expense not cost of goods sold account.what does it takes for one to be a real qualified or professional Accountant with a recognised institute……..
commissions are based on sales, right? net of tax?