Select the Appropriate Classification of Each of the Costs Listed

question 19

Multiple Choice

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Sales commissions

• A)Variable cost
• B)Fixed cost

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Definitions:

Menu Costs

Menu costs refer to the expenses incurred by firms in changing prices in response to market changes, including the physical costs of changing price tags and the costs of updating marketing materials.

High Inflation

A condition where the general price level in an economy increases rapidly over a period, eroding purchasing power.

Velocity

Velocity in economics refers to the speed at which money circulates within the economy, indicating how frequently units of currency are used to purchase domestically produced goods and services.

Price Level

The present average price level across the economy's entire production of goods and services.