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Fixed expenses are difficult to reduce because they are typically contractual obligations or essential costs that do not fluctuate with changes in income or activity levels. Examples include rent, salaries, and loan payments, which must be paid regardless of financial circumstances. Additionally, cutting fixed expenses often involves complex decisions, such as renegotiating contracts or making significant operational changes, which can be challenging and time-consuming.
What else can I help you with?
What are the two types of expenses?
fixed expenses and variable expenses
How are variable expenses different from fixed expenses?
Variable expenses are those expenses which vary according to production level while fixed expenses are those expenses which have no effect of production level and remain same.
What are the different types of selling expenses?
it is the FIXED and VARIABLE it is the FIXED and VARIABLE expenses only not selling expenses.JOKE.this is a GUESS.haha
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.
Why are fixed and variable expenses important to your budget?
they are important because you have to pay fixed and they are accountable. variable expenses are important because they can change your budget.
Why are fixed expenses difficult to reduce?
Fixed expenses pay for necessities like rent and utility bills.
How do you you a sentence with fixed expenses?
sentence do you use fixed expenses in a sentence? that's a sentence^
What does fixed expenses mean?
the word fixed expenses means to rent
What are the two types of expenses?
fixed expenses and variable expenses
How are variable expenses different from fixed expenses?
Variable expenses are those expenses which vary according to production level while fixed expenses are those expenses which have no effect of production level and remain same.
What are the different types of selling expenses?
it is the FIXED and VARIABLE it is the FIXED and VARIABLE expenses only not selling expenses.JOKE.this is a GUESS.haha
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.
How do flexible expenses differ from fixed expenses?
Flexible expenses vary over time.
Why are fixed and variable expenses important to your budget?
they are important because you have to pay fixed and they are accountable. variable expenses are important because they can change your budget.
The margin of safety is equal to?
a. sales-net operation incomeb. sales-(variable expenses/contribution margin)c. sales-(fixed expenses/contribution margin ratio)d. sales-(variable expenses + fixed expenses)
What are examples of a fixed expense?
Fixed expenses are those expenses which don't have any relation with actual production volume, examples are building rent, administration staff salaries, administration expenses etc
Are selling expenses fixed or variable cost?
selling expenses is a mixed costs. it is a mixture of both fixed and variable components. for example, in selling expenses in a retail shop; fixed costs are the employees salary. while variable cost will be their commission or bonus of the sale.
