Which of the operating expenses of the company is variable?
A) Rent.
B) Sales Commissions.
C) Maintenance Expense.
D) Clerical Expense.

Question

Quizplus · Accepted Answer

Sales commissions are considered a variable expense because they are tied to sales performance and will increase or decrease based on the level of sales activity. The other options, rent, maintenance expense, and clerical expense are considered fixed expenses because they typically do not fluctuate based on levels of production or sales.

Which of the Operating Expenses of the Company Is Variable