ECONOMICS

Detailed explanation-1: -Marketing expense is categorized as a fixed cost since companies allocate money that they plan to spend over a particular period and will aim to spend the monthly or annual marketing budget. At the same time, there are some elements of marketing expense can be considered variable.

Detailed explanation-2: -Marketing expense is comprised of those costs incurred to present an organization’s goods and services to prospective customers. Examples of costs that are classified as marketing expenses are: Advertising. Agency fees.

Detailed explanation-3: -Fixed costs are costs that are independent of volume. Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

Detailed explanation-4: -Any cost that changes based on production or sales volume is considered a variable cost, which includes things like the cost of producing a product, advertising costs, and shipping costs.

Detailed explanation-5: -Companies incur two types of production costs: variable and fixed costs. Variable costs change based on the amount of output produced. Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output.