The advertising costs that Pepsi incurred to air its commercials during the Super Bowl can best be described as a:
A)variable cost.
B)fixed cost.
C)product cost.
D)prime cost.

Question

Quizplus · Accepted Answer

The advertising costs for Pepsi during the Super Bowl can be considered a fixed cost because it is a set expense that does not change regardless of how many Pepsi products are sold. It is a necessary expense to promote the brand during the Super Bowl, but it does not directly vary with production or sales.

The Advertising Costs That Pepsi Incurred to Air Its Commercials