Asked by
Tyneisha Phillips
on Nov 13, 2024Verified
Salesperson commissions
A) Prime costs
B) Conversion costs
C) Both prime and conversion costs
D) Neither prime nor conversion costs
Salesperson Commissions
Payments made to sales staff based on a percentage of the sales they generate, used as an incentive to increase sales performance.
Prime Costs
The direct costs of manufacturing, specifically direct labor and material costs.
Conversion Costs
Costs incurred during the process of converting raw materials into finished products, typically including direct labor and manufacturing overhead.
- Distinguish between product costs and period costs.
Verified Answer
JS
Learning Objectives
- Distinguish between product costs and period costs.