Final answer:
Direct Materials, billing costs, and sales commissions are all considered costs in a business, so the correct answer to the question is D) All of the above.
Step-by-step explanation:
The question is asking which of the listed items are considered costs for a business. Within accounting and finance, costs are incurred by a business in the process of producing goods or services. Direct Materials (DM), billing costs, and sales commissions all represent different types of costs a business may encounter.
- Direct Materials (DM) are the raw materials that are used in the production of a product and are directly attributable to the product.
- Billing costs could refer to the expenses associated with invoicing customers, such as printing, postage, and administrative time.
- Sales commissions are performance-based payments made to employees or agents for selling a company's products or services and are also considered costs.
Therefore, the correct answer is D) All of the above, as all these items represent types of costs that can be incurred by a business.