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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 staffAnswer: 1& 2
The commission paid to sales staff is classified under indirect labour costs. Is the commission classified under selling costs?
Yes – they are paid commission for doing the selling! (and, of course, selling costs are indirect labour costs as I explain in my free lectures)
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