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Fixed expenses are costs that remain constant regardless of activity level, such as rent, mortgage payments, and insurance premiums. Variable expenses, on the other hand, fluctuate based on consumption or usage, including groceries, utilities, and entertainment costs. Understanding the difference helps in budgeting and financial planning.
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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
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.
Printing and stationery expenses is fixed?
Variable
What is an expense that does not change each month?
fixed expenses do not change, variable expenses do.
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.
What is a variable expense?
A variable expense is a cost that fluctuates based on usage or consumption, rather than remaining fixed over time. Examples include utility bills, groceries, and entertainment expenses, which can vary from month to month. Unlike fixed expenses, such as rent or mortgage payments, variable expenses can be adjusted based on individual financial decisions and circumstances. Managing variable expenses is crucial for budgeting and maintaining financial stability.
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.
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 some examples of Variable Expenses?
utilities
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.
What the difference between Fixed and variable expenses in a budget?
Fixed expenses are costs that remain constant each month, such as rent or mortgage payments, insurance premiums, and subscription services. In contrast, variable expenses fluctuate based on usage or consumption, including groceries, dining out, and entertainment. Understanding the distinction helps in budgeting effectively, as fixed expenses are predictable while variable expenses can be adjusted based on financial goals.
