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Yes normally rent is fixed expense and need to be paid even there is no production at all.

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11y ago

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Which of these is an example of a fixed expense?

Rent food car payment electric bill


What is a fixed expense?

A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.


In estimating the profitability of a catering business is most likely to be considered a fixed expense in your overhead costs.?

An example of a fixed cost for catering would include rent; utilities, equipment and insurance.


What are the fixed costs that one should allow for when budgeting?

A fixed expense is a cost or overhead that remains the same each week, fortnight, month, quarter or year. An example of a fixed cost would be rent or a fixed mortgage repayment.


In estimating the profitability of a catering business blank is most likely to be considered a fixed expense in your overhead cost?

An example of a fixed cost for catering would include rent; utilities, equipment and insurance.


Is rent expense a current or fixed liability?

Rent expenses are generally termed Fixed expenses rather than variable expenses. It is fixed because it is consistent of a term and cannot be adjusted if revenues change.


Is health insurance an example of a fixed expense?

Only if the policy goes unchanged and the amount goes unchanged for the period of time that you're assessing the fixed expense for. A fixed expense is an amount that is payable, and that is the same amount each period. So if your health insurance policy is always $25 per week, than yes. But you must take into account that sometimes insurance companies increase rates, or your health insurance needs change as you get older, have a partner, have kids etc. I would only ever consider it a short term fixed expense. In business a fixed expense is generally that of overheads, such as rent etc.


Is rent expense a liability?

rent is an expense while outstanding rent is a liability


What kind of expense is rent expense?

Rent expense is a Revenue expense and not a capital expense. It is a revenue expense because it recurs from year to year and is not an expense in purchasing a fixed asset. It is classified as a revenue expense also because it features in the income statement of each year and following the principle of accruals, the accountant must, make the necessary end of period adjustments to make sure that the the amount of rent expense that should have paid is charged against revenue and not just the actual cash paid.


What is an expected expense in a budget that remains constant?

An expected expense in a budget that remains constant is called a fixed expense. This means the cost stays the same each month, such as rent or a car payment.


Is an increase in rent expense a credit?

Rent expense has a debit balance as a normal balance so increase in rent will be shown by debit to rent expense.


What the difference between expense and prepaid expense with example?

Expense is any cost that the firm incurs to earn the particular revenue. Most expense are required to be paid except for a few "non-cash expense" such as depreciation. Prepaid, as suggested, are expenses paid in advance but have not yet "used" to generate revenue. It is to be used at a later date. One example of a prepaid expense would be rent i.e. prepaid rent. The owner pays the rent for the next 2 months at $100 per month. Prepaid rent = $200.