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Fixed Expenses:

These are those expenses which don't change with change of production rate and remain fixed up to certain measurement base criteria. For Example: if machine can produce 1000 units and have a operating cost of $1000 per month then it will remain $1000 from 0 - 1000 units range no matter we produce how much units in this range so this $ 1000 is fixed expanse for operating this machine.

Variable Expenses:

These are those expenses which change with the change of units of products but remain fixed relative to units of product. For example if 1 unit requires $ 10 to produce and we produce 10 units then variable cost will be $100 and if we produce 100 units it will goes to $1000. So it is changing according to quantity of units but remain fixed relative to 1 unit of product which is $10 per unit.

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What is an expense that does not change each month?

fixed expenses do not change, variable expenses do.


What are the different components of a family budget?

A family budget generally reflects the family's income as well as the family's fixed and variable expenses. The fixed expenses will include food, rent and transportation costs.


How do you write a personal budget?

A good way to start is to keep track of all the money you earn and spend over a period of time (at least a month), and break it down into fixed expenses such as rent, and variable expenses such as gas and food. Add up the fixed expenses, subtract that from your income, and whatever is leftover can be split among the variable expenses. A very good walkthrough with worksheets is linked below.


How many categories should you include in a budget?

You should include at least five categories in a budget: income, fixed expenses, variable expenses, savings, and debt repayment.


What is the main difference between fixed and monthly expenses?

The opposite of "fixed" expenses are "variable" expenses. You would have both fixed and variable expenses every month.Fixed expenses are the same amount every month - no matter what.Variable expenses are different (they vary) every month depending on choices you make every month.Examples of fixed expenses:rent - it's the same amount whether you're there every day or on vacation for 2 weekscar payment - it's the same whether you drive it daily or it's in the garagestudent loans -garbage collection - (unless you have them haul off furniture or appliances)Examples of variable expenses:electric - the more you use, the higher your billwater - the more you use, the higher your billgroceries - depends on what you buy each weekentertainment - renting movies vs. going out to dinner vs. going to the beach vs. road trip vs. amusement park vs. bar with friends

Related Questions

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.


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)


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.


Are fixed expenses more important than variable expenses?

they are both inportant, because they both burn your money.


Is electricity a variable or semi-variable cost?

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.