Salesmen commission is a:
ADistribution overhead
BAdministrative overhead
CSelling overhead
DProduction overhead
Answer & Solution
Correct answer: C. Selling overhead
1. Selling overheads include indirect expenses incurred to obtain orders from customers.
2. Salesmen commission is paid to the sales force for closing those orders.
3. Distribution overhead, in contrast, covers the cost of delivering products to buyers.
4. Hence salesmen commission is classified as selling overhead.
_Source: ICAI BoS Inter Paper 3, Ch 4 "Overheads", §4.2 Functional table_
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