It Is Time to Develop a Budget for Marketing Department

Multiple Choice

It is time to develop a budget for marketing department activities for the next year. Your team is looking over the following costs.
a. Office rent
b. Sales commissions
c. Promotional budget
d. Product development costs
e. Office supplies
The finance department has recently told you that you have $3,000 to spend on office supplies. You cannot go beyond this no matter what changes happen in the marketing department. Your salespeople get a flat 15% sales commission on anything they sell. With this in mind, which of these costs are variable costs?

A) Office rent, sales commissions, promotional budget, product development costs, office supplies
B) Office rent, promotional budget, and office supplies
C) Sales commissions, promotional budget, and product development costs
D) Sales commissions, product development costs, office supplies
E) Promotional budget and office supplies