Which is example of a cost likely to have a fixed behavior pattern
Sales force commission
Raw material costs
Advertising costs
Electricity costs for packaging equipment
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Which is example of a cost likely to have a fixed behavior pattern
Sales force commission
Raw material costs
Advertising costs
Electricity costs for packaging equipment
Keep in mind that variable costs are those that you will incur for every unit you process and sell. Fixed costs are those that are going to exist regardless of how many units are processed and sold. i.e. they are a set amount and don't change regardless of production.
Which costs do you think will go up and down with production/sales levels? And as the question asked, which one would remain the same regardless of what production does?
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