Final answer:
The statement that selling expense can be expected to remain stable over time is false. Selling expenses can fluctuate with sales volume, marketing campaigns, and can be variable costs, unlike fixed costs such as rent which remain constant regardless of production levels.
Step-by-step explanation:
Selling expense is not necessarily expected to remain stable over time. This is false because selling expenses can vary depending on a number of factors, such as sales volume, marketing campaigns, and other variable costs. Selling expenses are often tied to the level of sales activity and can fluctuate with market conditions and strategic decisions made by the company.
For instance, if a company decides to increase its advertising to boost sales, its selling expenses are likely to rise. Similarly, during a period of lower sales activity, the company might reduce its selling expenses by cutting down on marketing or sales force expenses.
Fixed costs, on the other hand, do not change regardless of the level of production. They are expenses that are stable over time, such as rent on a factory or retail space. However, selling expenses are not typically fixed costs because they can change with the intensity of sales efforts and market dynamics.