Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.


Are commissions a cost of goods sold account or an expense?

Sales commissions are a selling expense. Selling expenses are reported on the income statement as part of the operating expenses. Often the operating expenses will appear as selling, general and administrative expenses or SG&A.

Sales commissions are not part of the cost of a product and therefore are not assigned to the cost of goods held in inventory or to the cost of goods sold.