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How do flexible expenses differ from fixed expenses?
Flexible expenses vary over time.
What does flexible expense mean?
Payments like house mortages or car payments are fixed expenses, they can't change. Flexible expenses, like food, entertainment, gas money and clothes are flexibe, and can be changed whenever you are low on money or need something specifically.
What is the order of steps to make a personal budget A Reduce expenses B Categorize expenses to required versus luxury C Add all income sources D Add all expenses D Are expenses below income?
Total your income.Figure out how much money you are spending.Categorize your expenses to show where your money goes.Determine if your expenses are above or below your income.Reduce expenses in flexible categories to save or increase savings. OR 1. Add up all sources of income 2. Calculate all expenses - this may take several tries because you may forget items 3. Categorize different expenses 4. Determine if expenses are below income 5. Reduce expenses in flexible categories - required vs luxury
What are flexible budgets?
Flexible Budgets sound a bit like an oxymoron but really they're not. Budgets are usually built on an assumption or set of assumptions such as units produced, cargo moved, or customers helped. If these assumptions are achieved then the expenses anticipated in the budget should occur and variances calculated are valid. But, let's say that drastic change occurs in your industry rendering the assumptions upon which the budget was built hopelessly outdated. Examples of this could be the loss of a critical vendor or the influx of a major new customer. This would make comparisons of actual expenses to outdated budget expenses worthless. But flexible budgets can attempt to compensate for such changes by flexing the budgeted expenses based on changes to those underlying assumptions.Ok, here's a simplified example: You make widgets. You forecast with all known information at budget time that there will be a market for your widgets of 100 next year. It cost you $2 per widget to make so your expenses would be $200. As you cruise through second quarter your sales team pulls off the order of the century and now you anticipate selling 10,000 widgets. Yippie! But suddenly your expenses are through the roof - duh - and at year's end you have expenses of $19,000. Comparing this to the budget of $200 you have a negative variance of $18,800. Is that bad to have expenses of $19,000? No. Your budget is not reflecting the new reality of selling 10,000 widgets. Here's where flexible budgeting comes in. You establish what your budgeted expenses should "flex" on. In our case it would be widgets and by what relationship your expenses should flex. In our example above the relationship is $2 per widget. If your budget "flexed" on the number of widgets, the expenses would now be $20,000 and with this new number the variance calculation would make more sense. Hope this helps.
What is irregular expenses?
the expenses which will be not regular like penalty, miscellaneous expenses
How do flexible expenses differ from fixed expenses?
Flexible expenses vary over time.
How do flexible expenses differ from fixed expense?
Flexible expenses vary over time.
What Expenses that change from month to month?
Flexible Expenses
How is a budget is made?
Figure out your income,List your expenses,Categorize your expenses,Determine if expenses are below income, and Reduce expenses in flexible categoris if nessecary.
How is a budget made in steps?
Figure out your income,List your expenses,Categorize your expenses,Determine if expenses are below income, and Reduce expenses in flexible categoris if nessecary.
Can you use flexible spending account and claim medical expenses?
Yes but you can NOT deduct the medical expenses that are paid for from your FSA account.
What can I spend with my flexible spending account?
You can only pay for medical expenses with your flexible spending account. You can pay for x-rays, prescriptions, doctors visits, hospital visits, and eye visits. Your company should have a list of all eligible expenses.
Put the steps in the correct order to show how to put together a personal budget Add up all of your sources of income Figure out how much money you're spending Categorize your expenses to?
*total your income *figure out how much money you are spending. *categorize your expenses to show where your money goes. *determine if your expenses are above or below your income. *reduce expenses in flexible categories to save or increase savings
What does flexible expense mean?
Payments like house mortages or car payments are fixed expenses, they can't change. Flexible expenses, like food, entertainment, gas money and clothes are flexibe, and can be changed whenever you are low on money or need something specifically.
What is an effective method for evaluating a cost center?
Cost centers generate expenses only. A comparison of the actual expenses with the flexible budget amounts allowed at that level is the most effective.
What is the order of steps to make a personal budget A Reduce expenses B Categorize expenses to required versus luxury C Add all income sources D Add all expenses D Are expenses below income?
Total your income.Figure out how much money you are spending.Categorize your expenses to show where your money goes.Determine if your expenses are above or below your income.Reduce expenses in flexible categories to save or increase savings. OR 1. Add up all sources of income 2. Calculate all expenses - this may take several tries because you may forget items 3. Categorize different expenses 4. Determine if expenses are below income 5. Reduce expenses in flexible categories - required vs luxury
What is the difference between fixed expenses and flexible expenses?
A fixed expense is an expense that will cost you the same month by month. Such as rent, mortgage, car payment, student loans, ect. Flexible expense, refers to expenses that vary month by month, like your gas, phone, and electric bill. Flexible expenses may also include money budgeted for clothes,food, entertainment, and savings. Things that may not cost you the same month to month. It's important to know the difference so you can budget accordingly. Source: http://answers.yahoo.com/question/index?qid=20071101143515AABFl80
