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!!
Fixed costs are the costs associated with your business' product that must be paid regardless of the volume of that product or service you sell. 1  No matter how much you sell or don't sell, you still have to pay your fixed costs. 2  Variable costs are costs of labor or materials that change with sales.