depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
A car is a variable expense having the following properties: Car payment ( fixed Expense) Maintenance and usage costs (variable) So in total it is a variable expense. A car payment is considered a liability.
Fixed
If advertising expense is fixed and has no concern with level of sales then it Is fixed but if it is changed with the change in level of sales then It is variable cost.
Many costs includes fixed as well as variable portion for example electricity cost in which there may be some portion of expense which remains fixed while some change due to higer or lower production.
A fixed cost is one that will not change in total due to changes in production volume. An example would be factory rent. No matter how many widgets are produced in that factory, total rent is going to be the same. However, this means that the "per unit" cost changes based on how many widgets are produced. Variable costs, on the other hand, have a fixed per unit price, but total costs change in response to a change in volume. For example, let's say each widget requires $10 of direct labor to produce. Total variable costs is going to change based on how many widgets are produced.
fixed expenses do not change, variable expenses do.
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.
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
There are variable and fixed costs. Businesses can manipulate the variable costs, but they cannot change their fixed costs in business.
Type your answer here... fixed cost + variable cost = total cost
The three types of cost you are referring to are Fixed, Semi Variable and Variable Costs. On a well though out COA the janitorial costs would fall under administrative costs. Thus fixed.
Fixed expense plus a variable