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If you have difficulty answering the following questions, learn more about this topic by reading our Nonmanufacturing Overhead (Explanation).
Selling expenses should be allocated to the cost of goods sold for external financial reporting.
According to U.S. accounting principles, interest expense is an indirect product cost.
SG&A expenses can be classified as _______________ costs.
Commissions expense is part of the cost of goods sold.
SG&A expenses can vary between products and between customers.
Activity based costing is recommended for the allocation of SG&A expenses in order to determine the true profitability of a product or a customer.
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