Selling costs include expenditures on advertising, packaging and other marketing activities that help to promote and sell a product. These costs are added to the total cost of producing a product and may increase or decrease demand, depending on the effectiveness of the marketing campaign.

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Selling Costs

Question 104

Multiple Choice

Selling costs

A) are variable costs that increase total cost.
B) always increase demand for a firm's product.
C) always decrease demand by increasing competition.
D) always provide consumers with valuable services.
E) include marketing expenditures on advertising and packaging.

Correct Answer: