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Fixed Expenses:
These are those expenses which don't change with change of production rate and remain fixed up to certain measurement base criteria. For Example: if machine can produce 1000 units and have a operating cost of $1000 per month then it will remain $1000 from 0 - 1000 units range no matter we produce how much units in this range so this $ 1000 is fixed expanse for operating this machine.
Variable Expenses:
These are those expenses which change with the change of units of products but remain fixed relative to units of product. For example if 1 unit requires $ 10 to produce and we produce 10 units then variable cost will be $100 and if we produce 100 units it will goes to $1000. So it is changing according to quantity of units but remain fixed relative to 1 unit of product which is $10 per unit.
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What is an expense that does not change each month?
fixed expenses do not change, variable expenses do.
What are the different components of a family budget?
A family budget generally reflects the family's income as well as the family's fixed and variable expenses. The fixed expenses will include food, rent and transportation costs.
How do you write a personal budget?
A good way to start is to keep track of all the money you earn and spend over a period of time (at least a month), and break it down into fixed expenses such as rent, and variable expenses such as gas and food. Add up the fixed expenses, subtract that from your income, and whatever is leftover can be split among the variable expenses. A very good walkthrough with worksheets is linked below.
What does fixed expenses mean?
the word fixed expenses means to rent
What are variable monthly expenses?
expenses change
What are the two types of expenses?
fixed expenses and variable expenses
What are the different types of selling expenses?
it is the FIXED and VARIABLE it is the FIXED and VARIABLE expenses only not selling expenses.JOKE.this is a GUESS.haha
How are variable expenses different from fixed expenses?
Variable expenses are those expenses which vary according to production level while fixed expenses are those expenses which have no effect of production level and remain same.
Printing and stationery expenses is fixed?
Variable
What is an expense that does not change each month?
fixed expenses do not change, variable expenses do.
Why are fixed and variable expenses important to your budget?
they are important because you have to pay fixed and they are accountable. variable expenses are important because they can change your budget.
Are selling expenses fixed or variable cost?
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
Is rent expense a current or fixed liability?
Rent expenses are generally termed Fixed expenses rather than variable expenses. It is fixed because it is consistent of a term and cannot be adjusted if revenues change.
Are fixed expenses more important than variable expenses?
they are both inportant, because they both burn your money.
Is electricity a variable or semi-variable cost?
If electricity expense is dependant on production level then it is variable expenses other wise some of expenses may be of variable nature while some part is fixed or semi variable nature as well.
Is shipping expense variable or fixed?
Shipping expenses are variable. It depends on how much you ship and if you ship different size things or not.
