Variable expenses can change at different times of the year due to factors like seasonality and fluctuations in demand. For instance, retail businesses may have higher advertising costs during the holiday season.
Variable expenses are costs that change based on business activity or seasonality, such as inventory costs or utilities. These expenses can change a great deal at different times of the year due to various factors.
For example, in a retail business, variable expenses like advertising and promotional costs may increase significantly during the holiday season to attract more customers. Similarly, a restaurant may experience higher variable expenses for food and beverages during peak dining periods.
Another factor that can impact variable expenses is seasonal fluctuations in demand. For instance, a heating and cooling company may have higher variable expenses for equipment maintenance and repair during the summer months when air conditioning usage is at its peak.
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Answer: The Era of Good Feelings
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