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Expenses that are not affected by sales volumes are called fixed costs. These costs remain constant regardless of the number of units produced or number of units sold. An example would be the lease on a building. Sales volume may fluctuate but lease payments typically remain constant (as outlined by the lease agreement).
What else can I help you with?
What are fixed expenses?
Fixed expenses include rent or mortgage payments,depreciation on fixed assets (such as cars and office equipment),salaries and associated payroll costs, liability and other insurance, utilities, membership dues and subscriptions(which can sometimes be affected by sales volume),and legal and accounting costs.These expenses don't change, regardless of whether a company's revenue goes up or down.
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
What is The level of sales at which revenues equal expenses and net income is zero called?
break even point
What expenses are included in selling and distribution expenses?
sales commission
Formula for calculating net profit?
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
How much money does a used car dealer make?
It depends on his markup, sales volume and business expenses.
How much money should you get at a restaurant?
Depends on the target market, menu, location, expenses, sales volume
What are fixed expenses?
Fixed expenses include rent or mortgage payments,depreciation on fixed assets (such as cars and office equipment),salaries and associated payroll costs, liability and other insurance, utilities, membership dues and subscriptions(which can sometimes be affected by sales volume),and legal and accounting costs.These expenses don't change, regardless of whether a company's revenue goes up or down.
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
What is the amount available to be contributed to fixed costs after deducting variable expenses from sales called?
contribution
What is fixed expences?
Fixed expenses are regular, predictable costs that remain constant each month regardless of business activity. These expenses do not vary with production levels or sales volume. Examples include rent, insurance, and salaries.
What is The level of sales at which revenues equal expenses and net income is zero called?
break even point
What expenses are included in selling and distribution expenses?
sales commission
Formula for calculating net profit?
Sales Less: Cost of sales Gross Profit Less: Admin Expenses Selling Expenses Other Expenses Net Profit
Does Sales promotion expenses come in income statement?
All expenses comes in income statements same as sales promotion expenses are also shown in income statement.
Why does the direct write-off method of accounting for bad debts usually fail to match revenues and expenses?
Direct write-off normally does not match because the revenue from the sales was reported in an earlier period. It affects the revenues and expenses in the period it is written off in. If a company has many credit sales then it would be better to instead estimate an allowance for uncollectible credit accounts. That way the revenues and expenses are affected in each period and the sales numbers will represent the business' sales more accurately; provided the percentage is watched and adjusted as needed.
What will be your net profit of for example you have sales of 42980 and cost of sales of 14620 and expenses of 15390?
Sales = 42980 Cost of sales = 14620 Gross profit = 28360 Expenses = 15390 Net profit = 12970
