In a CVP income statement, a selling expense is generally
A) completely a variable cost.
B) completely a fixed cost.
C) neither a variable cost nor a fixed cost.
D) partly a variable cost and partly a fixed cost.

Question

Quizplus · Accepted Answer

Selling expenses can include both variable costs, such as sales commissions or shipping costs, and fixed costs, such as salaries for sales staff or advertising expenses. Therefore, they are partly a variable cost and partly a fixed cost in a CVP income statement.

In a CVP Income Statement, a Selling Expense Is Generally