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Yes. Variable costs are those that respond directly and proportionately to changes in activity level or volume, such as raw materials, hourly wages and commissions, utilities, inventory, office supplies, and packaging, mailing, and shipping costs. Since advertising does not, it is fixed. Some fixed costs are at the discretion of management, meaning business will not stop if you do not incur these costs (though it may suffer). Such costs include advertising. Other fixed costs are not avoidable, such as electricity.
What else can I help you with?
Is administrative expense a fixed cost or variable?
Fixed
Is advertising cost fixed or variable?
Advertising is a fixed cost. Many business allocate money to each quarter to cover their advertising cost for their company.
What type of cost is salary expense?
fixed cost
Is advertising expense direct or indirect cost?
indirect
Is interest expense a fixed cost?
yes
Is Advertising fixed costs?
If advertising expense is fixed and has no concern with level of sales then it Is fixed but if it is changed with the change in level of sales then It is variable cost.
Is administrative expense a fixed cost or variable?
Fixed
Can an expense be defined as variable cost and fixed costs?
depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
Is advertising cost fixed or variable?
Advertising is a fixed cost. Many business allocate money to each quarter to cover their advertising cost for their company.
What type of cost is salary expense?
fixed cost
Is advertising expense direct or indirect cost?
indirect
Is interest expense a fixed cost?
yes
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Are General Expenses a fixed Cost?
Some general expenses are fixed, meaning that they are the same amount every month, but many are not. When the expense depends on usage, such as electricity, it will not be fixed, but will vary from month to month. An example of a fixed general expense would be a monthly retainer or fee paid to an accountant or lawyer. If the expense is the same amount every month, it is called a fixed cost.
Is advertising a selling or Administrative expense?
Advertising is a selling expense
Is professional charges a fixed cost expense?
The only time professional charges would be a fixed cost expense is when you pay exactly the same charge every reporting period (monthly, quarterly, or yearly). If the professional charge changes depending of the amount of work done or time spent, then it is not fixed. Sometimes lawyers or accountants will work for a fixed fee that doesn't change over a period of time. Then it is a fixed cost expense.
