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Yes, promotion expense is typically considered a variable cost because it can fluctuate based on sales levels and marketing strategies. Companies often adjust their promotional spending in response to sales performance, new product launches, or seasonal demands. As a result, higher sales may lead to increased promotional expenses, while lower sales could reduce these costs.
What else can I help you with?
Is telephone cost a variable cost?
No, telephone expense is an administration expense and administration expenses are not included in product cost so not a variable cost in the sence of product cost.
Is administrative expense a fixed cost or variable?
Fixed
Is sales promotion cost a variable cost?
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
What is the difference between variable cost and stepped cost?
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
How do you calculate variable expense per unit?
To calculate variable expense per unit, divide the total variable expenses by the number of units produced or sold. The formula is: Variable Expense per Unit = Total Variable Expenses / Total Units. This calculation helps businesses understand the cost associated with producing each unit, aiding in pricing and budgeting decisions.
Is Promotion cost fix or variable?
can be fixed or variable
Is telephone cost a variable cost?
No, telephone expense is an administration expense and administration expenses are not included in product cost so not a variable cost in the sence of product cost.
What are variable expense?
cost that changes
Is administrative expense a fixed cost or variable?
Fixed
Is electricity a variable expense?
No but its cost may be variable depending on how much you use.
Is sales promotion cost a variable cost?
If it varies with the level of production then it is variable cost otherwise it is fixed cost.
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
What is the difference between variable cost and stepped cost?
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
Is bad debt expense a variable cost expense?
According to The Entrepreneur's Guide to Writing Business Plans and Proposals that can be found in google books, bad debt expense is a variable expense because the amount of bad debt depends on the amount of sales.
Is shipping expense a mixed cost?
Yes. Shipping cost is a combination of fixed and variable expense. Fixed expense of shipping would be payment and insurance. Variable expense of shipping would be fuel cost.
What is an example of a variable expense?
Any expense which is varying with levels of production is a variable expense. For example, with more production, expenses on raw materials will also increase. Consumption of raw material , thus , is a variable expense.
Explain variable cost as opposed to fixed cost?
A fixed cost is one that will not change in total due to changes in production volume. An example would be factory rent. No matter how many widgets are produced in that factory, total rent is going to be the same. However, this means that the "per unit" cost changes based on how many widgets are produced. Variable costs, on the other hand, have a fixed per unit price, but total costs change in response to a change in volume. For example, let's say each widget requires $10 of direct labor to produce. Total variable costs is going to change based on how many widgets are produced.
