You Are Meeting to Discuss the Proper Categorization of Marketing

question 100

Multiple Choice

You are meeting to discuss the proper categorization of marketing strategy costs in the monthly department budget performance report. You are especially interested in making sure the fixed and variable costs are properly categorized.

The major costs associated with the marketing strategy are as follows:
A. Salesperson commissions
B. Office space rent
C. Office equipment rental
D. Product raw materials
E. Product manufacturing labor
With respect to the variable or fixed nature of these costs,

• A) we know that product raw materials and office space rent are both fixed costs.
• B) we know that salesperson commissions, product raw materials, and product manufacturing labor costs are all variable costs.
• C) we know that office equipment rental, office space rent and sales commissions are all fixed costs.
• D) we know that office space rent is a variable cost.
• E) we know that product manufacturing labor is a fixed cost.

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Definitions:

Vicarious Punishment

Vicarious punishment occurs when an individual observes another being punished and then changes their own behavior to avoid experiencing the same consequences.

Discontinue

To bring an activity or process to an end or halt its continuity.

Observational Learning

Learning that occurs through observing the behaviors of others and the outcomes of those behaviors, without direct experience.

Acquiring

The process of gaining knowledge, skills, behaviors, or values, often through study, experience, or being taught.