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Why are lease payments included in numerator of fixed charge coverage ratio?
because lease payment is deducted as expenses in profit and loss statement. So while calculating this ratio again we have to add it to earnings before interest and tax
Can a fixed cost be changed?
A fixed cost, by definition, remains constant regardless of the level of production or sales within a certain range. However, over the long term, fixed costs can change due to various factors such as changes in lease agreements, property taxes, or long-term contracts. For example, if a business renegotiates a lease or expands its facilities, those fixed costs can be adjusted. Thus, while fixed costs are stable in the short term, they can change in the long run.
Is labor always a variable cost?
It depends on the nature of payment and work, if labor is fixed and don't have any relation with the volume of production then it is fixed otherwise it will be variable.
Can a coporation deduct a lease payment?
Yes, corporations can deduct lease payments. Property lease payments and vehicle lease payments are deductible in the year paid or accrued.
When fixed cost treated as relevant cost?
Fixed cost become relevent cost when a particular decision affects the fixed cost of production. For Example: Before Decision fixed cost $100 After Decision Fixed Cost $120 so in this case fixed cost also becomes relevent for decision making.
Why would you use a lease payment calculator?
A lease payment calculator is used to find out what an auto lease will really cost. It takes into account the MSRP, the negotiated price, the down payment, sales tax, length of lease, the end of lease car value, and new car lending rate, as well as the lease time.
The capital cost reduction on a vehicle lease is?
A: Like a down payment on a house
Will The Lease Payments Be Fixed Or Variable?
Sure, all the payments are invariable and they will not change. There will be no surprises with a higher payment later.
What is the cost to lease 26 ft box truck?
it depends on your credit ratings, down payment, term of lease and type of truck. but it will run atleast $1000 a month with 20% down payment/security deposit.
Is mortgage payment a variable cost?
Mortgage payment can either be fixed or variable cost. A fixed cost means the interest rate charged on the loan will remain the same for the loan's entire term. A variable cost means the interest rate changes or decreases as time pass.
How do I get to the Aaron's lease payment website?
aaron lease payment
How The Lease Rates Are Determined?
The lease rates will depend on your credit history, the equipment cost and the term structure you want. Similarly, rates are fixed and also can be paid off at any time.
Why are lease payments included in numerator of fixed charge coverage ratio?
because lease payment is deducted as expenses in profit and loss statement. So while calculating this ratio again we have to add it to earnings before interest and tax
Is royalties a fixed cost or variable cost?
Variable by definition, as it is a usage based payment. If a royalty is a fixed cost it's usually more of a "right", like buying the "rights" to make the next James Bond movie.
Can a fixed cost be changed?
A fixed cost, by definition, remains constant regardless of the level of production or sales within a certain range. However, over the long term, fixed costs can change due to various factors such as changes in lease agreements, property taxes, or long-term contracts. For example, if a business renegotiates a lease or expands its facilities, those fixed costs can be adjusted. Thus, while fixed costs are stable in the short term, they can change in the long run.
What is meant by a balloon payment on a lease car?
A balloon payment refers to the last payement you make on a car that you got as a long term lease. At the end of the lease you can either make a balloon payment and buy the car, or you return the car.
Is labor always a variable cost?
It depends on the nature of payment and work, if labor is fixed and don't have any relation with the volume of production then it is fixed otherwise it will be variable.
