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1. The entity's management is currently reviewing all costs of production. GABRIANA PHARMA To our hardworking medical representatives: I am glad to inform you of
1. The entity's management is currently reviewing all costs of production.
GABRIANA PHARMA To our hardworking medical representatives: I am glad to inform you of our new policy on sales commissions. Please see them below: Selling 1-50 boxes of our new drug, the medical representative gets P3,000 commission. Selling 51-100 boxes, commission becomes P5,000. Being able to sell 101-150 or more boxes allows a commission of P7,500. Thank you for your continued support. The commission to the medical representatives is best described by which of the following cost behaviors?Here are our findings: 1. From the previous period's production, we determined that all direct materials and direct labor costs are properly tagged to the correct products. Furthermore, overhead is also correctly calculated and allocated to the products or department where it is deemed appropriate. 2. Upon review of the accounting system, the system correctly assigns the all costs of unfinished goods as work-in-process inventory, all products manufactured as finished goods inventory, and all goods sold as cost of goods sold. 3. Upon further review of our accounting system on all other costs, it was determined that the entity properly tags administrative rent, salaries. and depreciation as operating expenses in the period they are incurred. 4. No other issues were identified. What do you think are the managers specifically checkingStep by Step Solution
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