Which of these are classified as distribution costs?
1. Rental of the finished goods warehouse
2. Depreciation of its own fleet of delivery vehicles
3. Commission paid to sales staff
Answer: 1& 2
The commission paid to sales staff is classified under indirect labour costs. Is the commission classified under selling costs?
Ask the Tutor ACCA MA
Distribution costs
6y ago#1Yes - they are paid commission for doing the selling! (and, of course, selling costs are indirect labour costs as I explain in my free lectures)
Thank you so much Sir. :)
6y ago#3You are welcome :-)
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