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An advantage of a fixed charge is that a payment will be the same from one month or week to the next. This helps businesses plan for the future based on actual cash outflow.
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What are the advantage of fixed cost?
When costs are fixed, you know what they are from month to month and can budget accordingly.
What is Cash flow to Fixed-Charge Ratio?
cash generate from normal course of business that able to cover the fixed charge such as lease and interest expense
Is professional charges a fixed cost expense?
The only time professional charges would be a fixed cost expense is when you pay exactly the same charge every reporting period (monthly, quarterly, or yearly). If the professional charge changes depending of the amount of work done or time spent, then it is not fixed. Sometimes lawyers or accountants will work for a fixed fee that doesn't change over a period of time. Then it is a fixed cost expense.
Explained the concept of depreciation and amortization?
Depreciation is the wear and tear charge allocated to specific fiscal year thorugh income statement for related fixed tangible assets while amortization is same as depreciation just it is done for intangible fixed assets.
What advantage does fixed charge coverage ratio offer using times interest earned?
This is a very open ended question that implies one does not understand the purpose of the ratio and I see no advantage to any ratio over another. A ratio simply measures the variables inputted. The Fixed Charge Coverage Ratio ("FCCR") reflects the amount of cash (or EBITDA) left after paying for unfinanced capital expenditures, dividends (or distributions) and cash paid taxes then divided by the "fix charges" or the sum of the past period's cash interest and required payments on long term debt or also know as the current portion long term debt ("CPLTD"). In my opinion to answer the question; the advantage of this ratio over the use of an Uniform Cash Flow Analysis ("UCA") Debt Service Coverage ("DSC") is simply the starting point of EBITDA vs. net income. EBITDA is more commonly used in larger credit facilities as a component of ratios or covenants measurement. Also a very similar ratio is Free Cash Flow ("FCF") divided by Total Debt Service ("TDS") or FCF/TDS.
Difference between a floating charge and a fixed charge?
fixed and floating charge
What is the advantage of a single fixed pulley?
a directional advantage
What advantage does the fixed charge coverage ratio offer over simply using times interest earned?
The fixed charge coverage ratio measures the firm's ability to meet all fixed obligations rather than interest payments alone, on the assumption that failure to meet any financial obligation will endanger the position of the firm
In a fixed pulley the effort force is equal to the?
Mechanical advantage of a fixed pulley
What is the mechanical advantage of a fixed pulley?
' 1 ' is.
What are the advantage of fixed cost?
When costs are fixed, you know what they are from month to month and can budget accordingly.
Advantages and disadvantages of fixed income securities?
what are the advantage and limitations of fixed income securities
Which fixed asset their no charge depreciation?
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
What is the advantage of a fixed pulley?
' 1 ' is.
Which element has a variable charge Mg Mn Al Ag?
Ag is silver, and it is one of the few transition metals that has a fixed charge. In this case it has a fixed charge of +1.
Does a fixed pulley provide mechanical advantage?
yes
The simple machine that provides a mechanical advantage of one?
Single fixed pulley
