It Is Time to Develop a Budget for Marketing Department

question 137

Multiple Choice

It is time to develop a budget for marketing department activities for the next year. Your team is looking over the following costs.
a. Office rent
b. Sales commissions
c. Promotional budget
d. Product development costs
e. Office supplies
The finance department has recently told you that you have $3,000 to spend on office supplies. You cannot go beyond this no matter what changes happen in the marketing department. Your salespeople get a flat 15% sales commission on anything they sell. With this in mind, which of these costs are variable costs?

• A) Office rent, sales commissions, promotional budget, product development costs, office supplies
• B) Office rent, promotional budget, and office supplies
• C) Sales commissions, promotional budget, and product development costs
• D) Sales commissions, product development costs, office supplies
• E) Promotional budget and office supplies

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Definitions:

Unconditional Affection

An affectionate feeling or action shown towards someone regardless of their actions or faults.

Conditional Affection

Affection or emotional support shown towards someone that is dependent on specific conditions or behaviors they exhibit.

Reaction Formation

A defense mechanism where an unacceptable impulse is transformed into its opposite, often in behavior and attitudes.

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.