Identify which expense metric below belongs to the variable cost subset.
A) store development costs
B) monthly commission costs
C) incremental revenue from new traffic
D) site maintenance costs
E) advertising costs

Question

Quizplus · Accepted Answer

Monthly commission costs are typically directly tied to the level of sales or revenue, and therefore fall under the variable cost subset. The other expenses listed are typically fixed costs or are not directly tied to revenue.

Identify Which Expense Metric Below Belongs to the Variable Cost