ENTREPRENEURSHIP

Detailed explanation-1: -Answer and Explanation: The sales commission cost is a variable cost as the amount varies proportionately with the number of units sold for a product, which in turn governs the production volume as well.

Detailed explanation-2: -Commissions. Salespeople are paid a commission only if they sell products or services, so this is clearly a variable cost.

Detailed explanation-3: -Commissions are compensation for obtaining sales. Hence, sales commissions are a selling expense and will be recorded in general ledger accounts having Sales Commissions Expenses in their title. Sales commissions are considered to be operating expenses and are presented on the income statement as SG&A expenses.

Detailed explanation-4: -One common expense category that sales commissions can be classified under is cost of goods sold (COGS). This is because commissions are often based on the sales of products or services, and so can be seen as a direct cost of generating revenue.

Detailed explanation-5: -Sales commissions are also considered a direct cost because they play a vital role in delivering the product to the customer.