Asked by Kenny Wayne on Apr 30, 2024

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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.
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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.