yes it is because of the instent cash flow of the variable flow of 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.
why depreciation is not same amount each year?
Some general expenses are fixed, meaning that they are the same amount every month, but many are not. When the expense depends on usage, such as electricity, it will not be fixed, but will vary from month to month. An example of a fixed general expense would be a monthly retainer or fee paid to an accountant or lawyer. If the expense is the same amount every month, it is called a fixed cost.
The accruals concept, otherwise known as the matching concept as it's purpose is to match expenses and revenue to each other in the correct accounting period.
Prepaid expenses are those amounts which are paid in advance and no benefit is recieved by the business so until benefit not taken this amount is same as cash that's why shown as current asset in balance sheet.
Some expenses are the same amount each month and some vary. Mortgage and taxes stay the same each month. Expenses that vary are electricity, gas, and food.
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.
The opposite of "fixed" expenses are "variable" expenses. You would have both fixed and variable expenses every month.Fixed expenses are the same amount every month - no matter what.Variable expenses are different (they vary) every month depending on choices you make every month.Examples of fixed expenses:rent - it's the same amount whether you're there every day or on vacation for 2 weekscar payment - it's the same whether you drive it daily or it's in the garagestudent loans -garbage collection - (unless you have them haul off furniture or appliances)Examples of variable expenses:electric - the more you use, the higher your billwater - the more you use, the higher your billgroceries - depends on what you buy each weekentertainment - renting movies vs. going out to dinner vs. going to the beach vs. road trip vs. amusement park vs. bar with friends
In business, there are two common types of expenses: variable and fixed. Variable expenses are those which change as production changes, whereas fixed charges are usually the same regardless of the amount produced in the short term. Some examples of variable expenses for a packaged goods company: -The cost of the product (raw materials, packaging) -Labor and conversion costs at the factory (the more you produce the more labor will be required) -Overheads at the factory (the more you produce, the more water and electricity you will use)
A fixed variable is the thing that stays the same, such as the amount of water.
why depreciation is not same amount each year?
The dependent variable in an experiment is the thing that changes due to the experimentor changing the independent variable. Basically, its what you measure and record. For example: you create an experiment that observes the effects of the amount of sunlight on plants. You give one plant more sunlight than the other, leaving everything else exactly the same. That is your independent variable. Say you measure the height of each plant every week. Since the height is DEPENDENT on the amount of sunlight each plant got, the height is your dependent variable.
A control variable means an experiment that does not change, and it's used to validate results. For example, one want to test how two plants would grow, one needs to give each plant the same amount of water at the same time.
The temperature and the amount of water need to be kept the same so that the only variable that changes is surface area. If you allow the temperature and/or the amount of water to change too, you will not know which variable is causing the changes that you observe.
The same identifier (variable name) may be used for at most one variable in each scope. Each method has its own scope, in addition to the global scope which is accessible from all others. However, each scope would have a different variable than every other scope despite using the same name for it.
In an experiment, the independent variable is altered, and the effect observed is the dependent variable, or outcome. The controlled variable is intended to be kept the same throughout the experiment so that changes in it do not affect the results.
It is a relationship which is non-linear. The same amount of change in the independent variable brings about different amounts of changes in the dependent variable and these differences depend on the initial values of the independent variable.