Question
Is advertising a fixed cost or variable cost
Answers
GPT-4o mini
Advertising can be classified as a variable cost. This is because the amount spent on advertising can vary with the level of sales or production. For example, a company might increase its advertising budget in response to higher sales or target specific campaigns during busy seasons.
However, some advertising costs can also have fixed components, such as long-term contracts for advertising space or sponsorship deals, which may incur a set fee regardless of sales levels. Therefore, while advertising is primarily considered a variable cost, it can also include fixed elements depending on the specific circumstances of the advertising strategy.
However, some advertising costs can also have fixed components, such as long-term contracts for advertising space or sponsorship deals, which may incur a set fee regardless of sales levels. Therefore, while advertising is primarily considered a variable cost, it can also include fixed elements depending on the specific circumstances of the advertising strategy.