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Is interest expense a fixed cost?
yes
Is administrative expense a fixed cost or variable?
Fixed
What type of cost is salary expense?
fixed cost
In estimating the profitability of a catering business blank is most likely to be considered a fixed expense in your overhead cost?
An example of a fixed cost for catering would include rent; utilities, equipment and insurance.
Is interest expense a Direct Cost?
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
Is interest expense a fixed cost?
yes
Is administrative expense a fixed cost or variable?
Fixed
Can an expense be defined as variable cost and fixed costs?
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
What type of cost is salary expense?
fixed cost
In estimating the profitability of a catering business blank is most likely to be considered a fixed expense in your overhead cost?
An example of a fixed cost for catering would include rent; utilities, equipment and insurance.
Is interest expense a Direct Cost?
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
Accounting treatment of trade discount and cash discount?
Trade Discount are considered cost of sales/reduction in sales dependant upon who the customer is. Cash Discount is always considered Increasing Interest Expense/Reduction of Interest Expense, dependant upon who the recipient is.
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
In estimating the profitability of a catering business is most likely to be considered a fixed expense in your overhead costs.?
An example of a fixed cost for catering would include rent; utilities, equipment and insurance.
When is fixed cost relevant in decision making?
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Why is the after-tax cost of debt rather than the before-tax cost used to calculate the weighted average cost of capital?
Because interest expense is deductible. Because interest expense is deductible.
Are General Expenses a fixed Cost?
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.
