Top-performing employees should be rewarded in order to increase their productivity. The most important step in this process is identifying top achievers, and you may find it difficult to determine who is most deserving. How do you do that?
Employees receive commissions for their sales or performance. Sales commissions are the primary form of sales compensation, and are part of the direct costs that occur when the product is sold, while the salaries that sales reps earn are in the indirect costs of SG&A. Such expenses can be categorized as part of the cost of goods sold in the accounting software in one sense or it can also be allocated to the cost of employee salary.