Are Advertising Costs Fixed or Variable?

Advertising represents a discretionary fixed cost, meaning the level of spending is up to company management and the spending level can change from one budget period to the next.

Is advertising expense a variable cost?

In contrast to fixed expenses, variable expenses respond, often in direct proportion, to changing or fluctuating production levels or sales volumes. ... Advertising is a component in your marketing budget, and you can classify those expenses as variable.

Is advertising fixed cost?

Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. They include such expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.