Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below: All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed). Assume that the relevant range includes all of the activity levels mentioned in this problem.Which of the selling and administrative expenses of the company is variable?

Question

Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below:  All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed). Assume that the relevant range includes all of the activity levels mentioned in this problem.Which of the selling and administrative expenses of the company is variable?

Quizplus · Accepted Answer

Sales commissions are a direct expense that varies with the level of sales. Rent, maintenance, and clerical expenses are fixed or mixed expenses that do not vary directly with sales.

Comparative Income Statements for Boggs Sports Equipment Company for the Last