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.
When costs are fixed, you know what they are from month to month and can budget accordingly.
cash generate from normal course of business that able to cover the fixed charge such as lease and interest 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.
The type of current with no fixed polarities is called alternating current (AC). In AC, the direction of the flow of electric charge periodically reverses, resulting in changing polarities. This is in contrast to direct current (DC), where the flow of charge remains constant in one direction. AC is commonly used in residential and commercial power supply systems.
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.
fixed and floating charge
a directional advantage
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
what are the advantage and limitations of fixed income securities
When costs are fixed, you know what they are from month to month and can budget accordingly.
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
A fixed pulley has a mechanical advantage of 1, which means it doesn't provide any mechanical advantage in terms of force. It changes the direction of the force applied without multiplying it.
yes
Single fixed pulley
cash generate from normal course of business that able to cover the fixed charge such as lease and interest expense
The ideal mechanical advantage of a fixed pulley is 1, as it does not provide any mechanical advantage in terms of force. The direction of the input (effort) and output (load) for a fixed pulley is the same, as the pulley simply changes the direction of the force applied.
If you have a fixed charge of -15, the total cost would be 15 units less than the original cost.