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The nature of the expense decides whether it is capital or revenue expense. If the expense is incurred for maintaing it in good condition it is revenue nature and it has to be debited in profit & loss account (eg. petrol, service charges, ect.). If the expense is incurred for making it run then it is capital nature and is to be added to the value of the motor car. (eg. change of engine or any important parts which is important for the running of the motor car)
What else can I help you with?
Is an expenses that does not change each month?
Fixed cost
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.
Printing and stationery expenses is fixed?
Variable
What are examples of fixed and variable cost in transportation company?
Purchasing of motor vehicle is example of fixed cost while using fuel for running those motor vehicles is a variable cost.
How can one calculate the average fixed cost for a business?
To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the cost per unit of fixed expenses incurred by the business.
A favorable fixed overhead volume variance occurs if?
Favourable fixed overhead variance occurs when actual fixed cost is less than the budgeted fixed overhead expenses.
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.
How can one determine the variable cost when given the fixed cost in a business scenario?
To determine the variable cost in a business scenario when given the fixed cost, you can subtract the fixed cost from the total cost. Variable costs are expenses that change based on the level of production or sales, while fixed costs remain constant regardless of production levels. By subtracting the fixed cost from the total cost, you can isolate the variable cost component.
How do you you a sentence with fixed expenses?
sentence do you use fixed expenses in a sentence? that's a sentence^
What does fixed expenses mean?
the word fixed expenses means to rent
How much would it cost to get a motor fixed on a 1996 Pontiac GT?
It depends on what needs to be fixed and who's fixing it.
What is a cost that stays constant is a?
This is called a fixed cost.In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business.
