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Advertising a line of products on social media is considered which type of cost?

Question

Advertising a line of products on social media is considered which type of cost?

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Solution

Advertising a line of products on social media is considered a marketing cost. Here are the steps to understand why:

  1. Identify the activity: The activity here is advertising a line of products on social media.

  2. Understand the nature of the activity: Advertising is a form of promotion, which is a part of marketing activities.

  3. Classify the cost: Costs in a business are classified based on the function they serve. In this case, since advertising serves the marketing function, it is classified as a marketing cost.

So, advertising a line of products on social media is considered a marketing cost.

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