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An expense that does not change from month to month is called a fixed expense. Fixed expenses remain consistent regardless of usage or consumption, such as rent or mortgage payments, insurance premiums, and subscription services. These costs are predictable and essential for budgeting purposes.
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Are General Expenses a fixed Cost?
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.
What is a fixed variable expense?
A fixed variable expense refers to costs that can fluctuate but remain relatively stable over a specific period. While "fixed" typically implies that the expense does not change, in this context, it suggests that the expense can vary but generally stays within a predictable range. Examples include utility bills or subscription services, which may change from month to month but usually have a consistent baseline. Understanding these expenses helps in budgeting and financial planning.
What is 12-month trailing expenses?
A 12-month trailing expense is a expense that is payable over the period of 12 months. It is not a one time payment but rather that can be paid over the 12 mothes.
Is interest expense a selling or general and administrative expense?
Interest expense is neither selling or administrative, and it's too significant to be called a general expense. Interest expense is usually called a finance expense and is usually listed separately from SG&A, on the Income Statement
What expenses listed is a variable expense?
A variable expense is a cost that can fluctuate based on usage or consumption. Examples of variable expenses include groceries, utility bills, and entertainment costs, as these can change from month to month depending on individual choices and consumption levels. In contrast, fixed expenses, like rent or mortgage payments, remain constant regardless of usage.
What is an expense that does not change each month?
fixed expenses do not change, variable expenses do.
If you pay your last month expenses on the following month is it still credited as an expense for the previous month or considered as a current month expense?
yes
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.
Are General Expenses a fixed Cost?
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.
What is a fixed variable expense?
A fixed variable expense refers to costs that can fluctuate but remain relatively stable over a specific period. While "fixed" typically implies that the expense does not change, in this context, it suggests that the expense can vary but generally stays within a predictable range. Examples include utility bills or subscription services, which may change from month to month but usually have a consistent baseline. Understanding these expenses helps in budgeting and financial planning.
Is your monthly savings goal considered a variable or fixed expense?
Your monthly savings goal is considered a fixed expense because you have a set amount that you plan to save each month, which does not change.
Rent expense cost of sales?
Rent expense is considered an overhead cost, not a cost of sales since it does not directly relate to the merchandise you are selling. Any prepaid rent (such as at the beginning of the month) should receive a journal entry debit to an account called prepaid rent, and at the end of the month should be credited to rent expense. Hope this helps.
What are the two classifications of family expenditures?
A family's expenses can be budgeted under two main categories, fixed and variable. Fixed expenses are those such as insurance premiums which do not change from month to month, while a variable expense would be one such as an electric bill which can vary widely from month to month.
What is 12-month trailing expenses?
A 12-month trailing expense is a expense that is payable over the period of 12 months. It is not a one time payment but rather that can be paid over the 12 mothes.
Is interest expense a selling or general and administrative expense?
Interest expense is neither selling or administrative, and it's too significant to be called a general expense. Interest expense is usually called a finance expense and is usually listed separately from SG&A, on the Income Statement
What is an example of a variable expanse?
A variable expense is a cost that can fluctuate based on usage or consumption. For example, a monthly electricity bill is a variable expense because it can vary significantly based on factors such as season, energy consumption habits, and the number of appliances used. Unlike fixed expenses, which remain constant, variable expenses can change from month to month.
What expenses listed is a variable expense?
A variable expense is a cost that can fluctuate based on usage or consumption. Examples of variable expenses include groceries, utility bills, and entertainment costs, as these can change from month to month depending on individual choices and consumption levels. In contrast, fixed expenses, like rent or mortgage payments, remain constant regardless of usage.
