Asked by Kenny Wayne on Apr 30, 2024
Verified
Sales commissions, raw materials, and labor costs are generally ______.
A) fixed costs
B) variable costs
C) a breakeven point
D) a demand curve
Variable Costs
Expenses that change in proportion to the level of production or business activity.
Sales Commissions
The payment made to sales personnel, often calculated as a percentage of the sales they generate, as a reward for their efforts in selling products or services.
Raw Materials
Basic materials that are used in the manufacturing process to produce goods or finished products.
- Recognize the classifications of total expenses and their influence on pricing strategies.
Verified Answer
IH
Isaac HastingsApr 30, 2024
Final Answer :
B
Explanation :
Sales commissions, raw materials, and labor costs typically vary with the level of production or sales volume, making them variable costs.
Learning Objectives
- Recognize the classifications of total expenses and their influence on pricing strategies.