The example of a fixed operating expense from the options provided is Insurance.

Here's why:

1. Insurance: This is a fixed operating expense because it is typically a set amount that is paid on a regular basis, such as monthly or annually. It does not change based on the volume of business activity.

2. Sales Commissions: These are not fixed expenses because they vary based on the volume of sales. The more sales made, the higher the commission expense.

3. Advertising: This is not a fixed expense because it can vary based on the marketing strategy of the business. A business may choose to spend more on advertising during certain periods and less during others.

4. Travel Expenses: These are not fixed expenses because they can vary based on the travel needs of the business. For example, a business may have more travel expenses during a particular project and less during others.

Question

The example of a fixed operating expense from the options provided is Insurance.

Here's why:

1. Insurance: This is a fixed operating expense because it is typically a set amount that is paid on a regular basis, such as monthly or annually. It does not change based on the volume of business activity.

2. Sales Commissions: These are not fixed expenses because they vary based on the volume of sales. The more sales made, the higher the commission expense.

3. Advertising: This is not a fixed expense because it can vary based on the marketing strategy of the business. A business may choose to spend more on advertising during certain periods and less during others.

4. Travel Expenses: These are not fixed expenses because they can vary based on the travel needs of the business. For example, a business may have more travel expenses during a particular project and less during others.

Knowee AI · Accepted Answer

The example of a fixed operating expense from the options provided is Insurance.

Here's why:

1. Insurance: This is a fixed operating expense because it is typically a set amount that is paid on a regular basis, such as monthly or annually. It does not change based on the volume of business activity.

2. Sales Commissions: These are not fixed expenses because they vary based on the volume of sales. The more sales made, the higher the commission expense.

3. Advertising: This is not a fixed expense because it can vary based on the marketing strategy of the business. A business may choose to spend more on advertising during certain periods and less during others.

4. Travel Expenses: These are not fixed expenses because they can vary based on the travel needs of the business. For example, a business may have more travel expenses during a particular project and less during others.

Which of the following is an example of a fixed operating expense:*2 pointsInsuranceSales commissionsAdvertisingTravel expenses

Question

Which of the following is an example of a fixed operating expense:

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