Fixed
an income
fixed cost
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
Depreciation.
Fixed
depending on if the expense is a recurring is whether or not it can be fixed . most expense are unseen and therefore can not be put in as a fixed cost
To the depositor, it is an income but to the bank or institution providing the fixed deposit as a product, it is an expense.
an income
fixed cost
Interest expense is not a direct cost because it is not used to manufacture the products rather it is paid to acquire the capital.
Depreciation.
When there will be change in fixed cost of business then at that time fixed cost will be relevant cost For Example if acquiring new machinery will reduce the amount of fixed expense in that case fixed cost is also relevant.
Because interest expense is deductible. Because interest expense is deductible.
Formula for times interest earned = earning before interest and tax / interest expense Times interest earned = 32000 / 8000 = 4 times
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.
A fixed cost