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.
Fixed
Interest expense is generally considered a fixed cost because it remains constant regardless of the level of production or sales, as long as the interest rate and the principal amount of debt do not change. However, if a company has variable interest rates or uses a line of credit, the interest expense can fluctuate, making it partially variable. Overall, it is primarily categorized as fixed due to its predictable nature in most scenarios.
Step Cost remains fixed for certain range of expense and then increases while variable cost change with change in every unit of product.
No. Because it is calculated as a percentage of accounts receivable or net income it will be variable.
If electricity expense is dependant on production level then it is variable expenses other wise some of expenses may be of variable nature while some part is fixed or semi variable nature as well.
Fixed
fixed expenses do not change, variable expenses do.
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
Fixed expense plus a variable
A car is a variable expense having the following properties: Car payment ( fixed Expense) Maintenance and usage costs (variable) So in total it is a variable expense. A car payment is considered a liability.
fixed expense
If amount of sales commission is fixed and not base on number of units sold then it is fixed expense and vice versa.
If advertising expense is fixed and has no concern with level of sales then it Is fixed but if it is changed with the change in level of sales then It is variable cost.
Shipping expenses are variable. It depends on how much you ship and if you ship different size things or not.
Variable, it all depends on what brand and size the bag of food is as to what the price is
Notes payable is not fixed expense rather it is variable nature as much as production level increases there is increases in credit purchases and if there is no production there is no purchases.
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.