Choosing between a brand-new phone or an inexpensive or refurbished phone is a variable expense. A static budget is a budget in which the amounts will not change even with significant changes in volume.. Some expenses can contain discretionary, variable, and fixed categories. B. number of credit inquiries.C. Fixed costs are also allocated in the indirect expense section of the income statement which leads to operating profit. Question 1. Non-operating expenses comprise interest expense (and income), and other expenses (income). b. Rent B. B) 15% increase in total mixed costs. B. fixed costs in total remain the same. 1 17. A. The major lesson here is that in spite of its name, “fixed” expenses are not necessarily set in stone. Which of the following is an example of a fixed expense? A. Fixed expense are those expenses that will remain same despite any change in the sales amount, production or some other activity. This is in contrast with variable expenses, which change. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. d. Direct materials. A) Elements of cost cannot be divided in different groups. C) Behavior of different costs is linear D) Selling per price unit remains constant. Operating expenses consist of the cost of sales, fulfillment, marketing, technology and content, general and administrative, and others. a) A, B, C b) B, C, D c) A, C, D d) A, B, D View Answer / Hide Answer D. payment history. + Fixed expenses + Profits b. The definition of fixed expenses is “any expense that does not change from period to period," such as mortgage or rent payments, utility bills, and loan payments. 52. Depreciation. As such, it may spread the fixed cost of the lease at $10 per mug. Percentage of Margin of Safety can be calculated in which one of the following ways? 6. Which of the following represents a CVP equation? These costs, such as depreciation expense, property tax expense and insurance expense, cannot be changed during short periods of time and are only What is a static budget? Account balance from ATM statement B. Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. They are expenses that will have to be paid by the company even though there are any changes in business activities. Mason Company’s selling price was $20.00 per unit. Office salaries c. Property taxes d. Depreciation 74. b Its margin of safety will be equal to zero. C) 8,500 units. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis. Don't allow balances to get to zero. Fixed and Variable Expenses Management budgets fixed costs, such as advertising, and keeps control over the expense. Depreciation is used to gradually charge the book value of a fixed asset to expense. The break-even point for Mason Company is: A) 10,500 units. A) monthly rent payment for the building B) electricity expenses C) utilities cost of the building D) direct material costs C. Move debt around frequently. If a company is operating at the break-even point: a Its contribution margin will be equal to its variable expenses. Food B. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. Outside the relevant range, total fixed costs may change and/or variable costs per unit may change. |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. The Benefits of Saving Money on Fixed Expenses . Which of the following is the right formula for calculating total mixed cost? Rent B. Which of the following is usually the largest fixed expense for a new vehicle - Answered by a verified Tutor We use cookies to give you the best possible experience on our website. The following are examples of both business and personal fixed expenses. C.the fixed costs and the variable cost per unit will not change. The calculations for sales commissions and delivery expense, followed by the selling expenses budget, are shown in the following … Some personal finance software lets you set a different amount from month to month for expenses that vary. Fixed Expenses – Definition, Examples and Lists. Finance Software for Variable Expenses . If a company requires a profit of $30,000 (instead of breaking even), the $30,000 should be combined with the fixed expenses in order to compute the point at which the company will earn $30,000. By continuing to use this site you consent to the use of cookies on your device as … Companies know how much they're planning to spend on advertising over a particular period and can calculate the percentage of that expense as part of their unit costs. Depreciation is one common fixed cost that is recorded as an indirect expense. 3. B. Which of the following account records would have the most current balance? Committed fixed costs relate to costs that the company will incur over the long-term. Chapter 19: Cost-Volume-Profit Analysis 19.1-11 Which of the following is NOT a fixed cost? Which of the following is not a fixed cost? 10. types of credit in use. A. More specifically, assign the following costs to a fixed asset: Purchase price of the item and related taxes. Which of the following are assumptions for break-even analysis? Sales = Contribution margin (Rs.) If it produces 10,000 mugs a month, the fixed cost of the lease goes down, to the tune of … A. Finally, Amazon has charged a provision for income taxes and accounted for equity method investment activity. Entertainment C. Rent D. Clothing a. Clothing C. Entertainment D. Food Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be: Construction cost of the item, which can include labor and employee benefits They remain constant for a … Property taxes. The company also has fixed sales salaries of $50,000. In contrast to a static budget, a company's sales department might have a flexible budget.In the flexible budget, the sales commissions expense budget would be stated as a percentage of sales. Sales commissions are 4% of sales dollars, and delivery expense, also called freight out by some companies, is $0.10 per unit sold. Which of the following is a good way to improve your credit score? C. finished goods inventory. My own account register C. My monthly bank statement: B. Fixed expenses totaled $54,000, variable expenses were $14.00 per unit, and the company reported a profit of $9,000 for the year. 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