The expenditure incurred for product-related advertising and promotion is an example of direct fixed costs.

Question

Quizplus · Accepted Answer

Direct fixed costs are expenses that remain constant and do not vary with changes in the level of production or sales. The expenditure incurred for product-related advertising and promotion is a direct fixed cost because it remains constant regardless of the number of units sold or manufactured.

The Expenditure Incurred for Product-Related Advertising and Promotion Is an Example