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.
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.
Variable
fixed expenses and variable expenses
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Variable expenses are those expenses which vary according to production level while fixed expenses are those expenses which have no effect of production level and remain same.
Fixed 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.
Variable
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.
Favourable fixed overhead variance occurs when actual fixed cost is less than the budgeted fixed overhead expenses.
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the word fixed expenses means to rent
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.
fixed expenses and variable expenses
Costs that need to be payed regardless of whether or not your business makes a sale/profit.
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.
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.