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!!
Email. Cost of sales refers to the direct costs attributable to the production of the goods or supply of services by an entity. It is also commonly known as the âcost of goods sold (COGS)â. Cost of sales measures the cost of goods produced or services provided in a period by an entity.It includes the cost of the direct materials used in producing the goods, direct labor costs used to produce the good, along with any other direct costs associated with the production of goods.he cost of sales attributed to a company's products or services are expensed as the company sells these goods. As the cost of sales does not include overhead costs, it has a higher proportion of variable cost than the operating costs.