In addition, medical devices include in vitro diagnostic products, such as general purpose lab equipment, reagents, and test kits, which may include monoclonal antibody technology. Certain electronic radiation emitting products with medical application and claims meet the definition of medical device.
Sales commission is a variable cost because the amount of the account is subject to variation. Think about it: A used car salesman is paid a commission say of $500 for every car he sells for the month of October. If he sells only 2 cars, then the sales commission is $1000, If he sells a whopping 12 cars, then the sales commission is $6000!!
Product costs are also called variable costs. It refers to that cost which varies in direct proportion to the volume of output. The cost per unit of product cost remains unchanged as production increases or decreases but total cost increases. So such type of costs are called product costs. For example; cost of direct material, direct labor and direct expenses. Image Source:advancedmp.com/wp-content/uploads/2013/11/cost_roller.jpg. Period cost is the fixed cost. It refers to that cost which remains unchanged by change in volume of out put. Fixed cost per unit decreases as production increases and increases as production declines.