Is advertising considered to be a fixed or variable cost?

Running a business means tracking and planning for expenses. With a good handle on costs, management can forecast future budgets. By adding sales forecasts it also can project revenues and net income. These costs, including advertising, fall into two general categories: fixed and variable. read more

So advertising can be considered as variable cost, the caveat is it usually capped at certain amount. So at budgeting stage, it can still considered as fixed cost. read more

Every company sets an advertising budget. The dollar amount can vary from one quarter or year to the next, but it represents a fixed cost. Fixed and Variable Expenses. Management budgets fixed costs, such as advertising, and keeps control over the expense. read more

Classifying fixed and variable expenses is the first step in performing an annual break-even analysis and in budgeting. In matters of advertising and marketing, deciding whether these expenses are fixed or variable isn’t as easy as it may first seem. read more