Which of the following would not appear as a fixed expense on a selling and administrative expense budget?
A) Freight-out
B) Office salaries
C) Property taxes
D) Depreciation

Question

Quizplus · Accepted Answer

Freight-out is considered a variable cost because it fluctuates with the level of sales or production volume, not a fixed expense that remains constant regardless of business activity levels. Fixed expenses in a selling and administrative expense budget typically include items like office salaries, property taxes, and depreciation, which do not vary directly with sales volume.

Which of the Following Would Not Appear as a Fixed