In a small construction firm, a crew supervisor is added for every ten workers employed. 0 Answers/Comments. Question. Entertainment Clothing C. Entertainment D. Food. For example, 1. This is a tax charged to a business by the local government, which is based on the cost of its assets. For a merchandiser, the starting point in the development of the master budget is the. If the total fixed cost is the same regardless of… Direct labor cost C. Sales commissions expense D. Straight-line depreciation expense. Fixed expenses divided by the contribution margin per unit is the break-even point in UNITS (not the break-even point in dollars). Write. Clothing purchases and movie tickets vary and groceries don't always cost the same every time you go shopping. C. Variable expenses are the function of production quantity. The cost incurred to register the issuance of a debt instrument. It is possible to determine the amount of the fixed cost from the graph. s. Expert answered|houd|Points 1299| Log in for more information. (a) Diesel engine plant (b) Nuclear power plant (c) Gas turbine plant (d) Pumped storage plant Ans: b. Hope that helped! The correct answer to the given question is option b) cost of business license. This answer has been confirmed as correct and helpful. A fixed expense is an expense that doesn't change, regardless of the activity level. _____ is invariably used as base load plant. 10. 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. Weegy: 2/3 User: reciprocal of 6/5 Weegy: 5/6 is the reciprocal of 6/5. Question: Which Of The Following Corporate Expense Categories Is Not Tax Deductible? Note that variable expenses are not considered "variable" because they are discretionary or unnecessary, but because they are fluctuating. True or False. Question. Gravity. D) Hourly wages for machine operators. The expenses that occur in businesses are classified into two types – fixed expenses and variable expenses. Which of the following is not true about the graph of a mixed cost? The accounting entry to record revenue expenditure is therefore as follows: Debit. Amortization 2,400 . If the total fixed cost is the same regardless of… It is possible to determine the amount of the fixed cost from the graph. Which Of The Following Corporate Expense Categories Is Not Tax Deductible? Which of the following is an example of a fixed expense? 0 Answers/Comments. Unlike variable costs, a company's fixed costs do not vary with the volume of production. Contribution: Contribution is the difference between the sales and-the marginal cost of sales and it contributes towards fixed expenses and profit. Variable expenses are … The property taxes on its Toyota City assembly plant. Margin of Safety. Book value = Cost of the asset – … Question: Which of the following is an example of a fixed expense. This is the … Test. 50,000. a. Loan Interest Payments Depreciation Loan Principal Payments Lease Payments And Overhead. … See the answer. Explain two Christian beliefs of Eucharist? 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. Show transcribed image text. Marketing report 2,000 . (Select 3 answers.) A computer for recording customer and order information A monthly fee for a flea market booth A radio ad. Management budgets fixed costs, such as advertising, and keeps control over the expense. Which of the following is a fixed cost? c. The cost of labor for its assembly line workers. Think of some examples of studies that might be harmful. Question. b. It stays the same. Incometaxes, B.) a. No matter what the company's sales volume, rent expense stays the same. All other things the same, which of the following would be true of the contribution margin and variable expenses of a company with high fixed costs and low variable costs as compared to a company with low fixed costs and high variable costs? They are expenses that will have to be paid by the company even though there are any changes in business activities. Money paid for goods and services. Factoring … For example, the phone bill is often considered a fixed expense for many people, but if you have high long-distance fees some months and not others, you should probably list your phone bill as a non-fixed expense. Once sales reach the break-even point, each additional unit sold will: A) reduce the margin of safety. NCERT Solutions Accountancy Business Studies Micro Economics Commerce. Fixed expenses are those that will remain same despite any change in the sales amount, production or some other activity. This answer has been confirmed as correct and … 0 Answers/Comments. 18. A fixed cost is one that does not change with an increase or decrease in sales or productivity and must be paid regardless of the company’s activity or performance. Created by. Which of the following is a fixed cost ? Question: Which Of The Following Statement Is INCORRECT? Asked 7/13/2016 3:34:07 PM. In a power plant if the … Filed Under: CBSE. D. all E. Income and expense intersection point is break-even point The depreciation associated with the asset is a fixed cost, since it does not vary from year to year, while the utilities expense will vary depending upon the company's usage of the building. 2.3 Ethical Concerns5. A fixed asset was bought for N60,000 on 1st January,… As the level of output increases; the average fixed… A fixed asset was bought for N60,000 on 1st January,… Which of the following is regarded as fixed cost? Entertainment C. Rent D. Clothing. 18. Expenses should be separated as fixed and variable B. Rent is an example of a fixed expense. Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities. Fixed expenses are expenses which remain static, not fluctuating over time. Edited by … You should defer expenses when generally accepted accounting principles or international financial reporting standards require that they be included in the … A fixed cost structure has less risk of volatile changes in net income than a company with a variable cost structure. Calculating fixed and variable expenses is an important aspect of effectively managing a budget to ensure that funds will be available when they are needed, including in an emergency when an unexpected expens… -clothing. Which of the following costs is a fixed cost? Variable Expense. A. Get Answer. Expert Answer . b. d. A mixed cost … Food B. Which of the following is an example of a fixed expense? Weegy: The factor that has the greatest impact … Highest; Lowest; Major work effort; Third; Answer: B. The term fixed expenses can be used in reference to either personal or business finances. See the answer. Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed costs. Break Even Point 5. This is one of the two common methods a company uses to account for the expenses of a fixed asset. Text line breaks and returns are controlled using which tags. 84. Inventory is a variable cost. 80,000; Direct Labour Rs. Fixed. Rent is an example of a fixed expense. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. There is a total cost line on the graph. Question 17 Options: A) Fixed Operating Expense Changes As Revenue Increases Or Decreases In The Relevant Range. Cost–Volume-Profit Analysis: Element # 1. Which of the following is an example of a fixed expense? The property taxes on its Toyota City assembly plant. This is a fixed compensation amount paid to employees, irrespective of their hours worked. Rent is an example of a fixed expense. Which of the following is an example of a fixed expense? There is a total cost line on the graph. Key Takeaways Fixed expenses cost the same amount each month. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? What type of studycould put human participants at risk? A. d. The variable cost portion of the graph is rectangular in shape. The salaries of the crew supervisors are a _____. A fixed asset was bought for N60,000 on 1st January,… As the level of output increases; the average fixed… A fixed asset was bought for N60,000 on 1st January,… Which of the following is regarded as fixed cost? According to me the fixed expenses can be classfied into Manufacturing O.H, Admn expenses, Selling Expenses so fixed expenses can be grouped into following heads: Asked 17 days ago|12/1/2020 7:33:30 PM. Rent C.) Food D.) Entertainment See answer douglastheboy douglastheboy D) Entertainment i hope i got this correct. The monthly rent of a retai… -cable/internet. The fixed cost of the building is $100,000 per year, while the variable cost of utilities is $250 per occupant. Which one of the following is a problem resulting from … Bookkeeping for expenses. This answer has been confirmed as correct and helpful. s. Expert answered|Score 1|yumdrea|Points 44296| Log in for more information. The degree of operating leverage can be … In accounting, costs are considered fixed or variable, with all businesses using a combination of both. Fixed Expense. See the answer. For most companies, rent expense is fixed. Updated 17 days ago|12/1/2020 7:45:23 PM. Cost–Volume-Profit Analysis: Element # 2. … Confirmed by Janet17 … A.) The following are examples of both business and personal fixed expenses. Three forms ... 23. Office salaries c. Property taxes d. Depreciation Ans: A, SO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation PDF created with pdfFactory Pro trial version Which of the following is most likely a variable cost? Why does he do this? Match. A. Depreciation taken on an office building, B.) 0 Answers/Comments. Which of the following is not true about the graph of a mixed cost? I won't know until I entered the whole thing lol but thank you so much. Key Concepts: Terms in this set (20) Expense. Fixed Cost Definition. What is meant by "democratization" and give an example. a. Spell. Fixed Cost refers to the cost or expense that is not affected by any decrease or increase in the number of units produced or sold over a short-term horizon.In other words, it is the type of cost that is not dependent on the business activity, rather it is associated with a period of time. Rent/Mortgage. Rent B. Advertising expense 120,000 . C. Rent which of the following is a fixed expense? A) They are part of the product cost B) They are excluded from inventory cost and are treated as period costs C) They are allocated to the product cost using a denominator-level capacity choice D) They are classified as nonmanufacturing costs The cost of a fixed asset that is charged to expense over its useful life in the form of depreciation. For zero output, total cost is Rs 120. Contribution Margin 3. It is a fixed cost as it is incurred with the same value over the life of the asset. The cost of an intangible asset that is charged to expense over its useful life as amortization. Food B. -hair salon. This question was created from Practice test 2 questions 2019 … e. The salary paid to Akio Toyoda, the Chief Executive Officer of … TutorsOnSpot.com. For most companies, rent expense is fixed. A.) This is in contrast with variable expenses, which change. With reference to a power station which of the following is not a fixed cost ? 69. This problem has been solved! A fixed expense would be b. a car payment because it does not change and is a set amount you have to pay, Reason for adopting democracy in countries Like Libya, Egypt, Nepal and Bhutan, Ernie Pyle describes the London Blitz using words that are both positive and negative. The cost of merchandise sold, C.) Depreciation taken on equipment, D.) The cost of commissioned sales people, E.) Alloftheabove. a. electricity b. worker bonuses c. mortgage on the building d. steel to produce refrigerators. A. 69. 5 marker​. ADVERTISEMENTS: The following points highlight the top five elements of Cost-Volume-Profit Analysis. Asked 122 days ago|8/18/2020 8:14:19 PM. Amortization: Benefits: Depreciation: Fixed Price Contracts (e.g. Fixed Costs . Knowing the amount of a company's fixed expenses assists in understanding how the retailer's net income will change as volume changes. The fixed cost for a business is the cost which is incurred for a given period regardless of the magnitude of production quantity. Revenue costs therefore comprise of the following: Repair costs; Maintenance charges ; Repainting costs; Renewal expenses; As revenue costs do not form part of the fixed asset cost, they are expensed in the income statement in the period in which they are incurred. Find out the total fixed cost in the following: Answer: The total fixed cost will be the same at all the levels of output, ranging from zero to six. s. Expert answered|Janet17|Points 25088| Log in for more information. It's much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense . Sales revenues should not depend on the amount of production. Online tutors ready to help 24/7 for any subject. View the step-by-step solution to: Question 70. Asked 37 days ago|11/12/2020 2:58:12 PM. Uploaded by: link7795. Of course, remember that some expenses that qualify as fixed for most people may be non-fixed, or variable, for you. D. Clothing. RENT is an example of a fixed expense. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. A) cost of dairy ingredients used to produce ice cream B) fuel used by delivery trucks C) labor wages of workers who mix dairy ingredients to make ice cream D) depreciation expense on factory building. Learn. 55. types of credit in use. Internet) Loan … User: Work environment includes ... Weegy: Reflecting on Sternberg s triangular theory, you recognize that when people speak of true love? Shipping expense 10,000 . d. The variable cost portion of the graph is rectangular in shape. Updated 8 days ago|12/10/2020 8:39:03 AM. Entertainment C. Rent D. Clothing. However, it may change if the production level increases beyond a limit. g |Score 1|Ishm|Points 21497| Log in for more information. Gradual writing-off of a tangible asset over its life is called depreciation. (Selling price per unit - Variable expense per unit)/Selling price per unit. Which of the following is an example of a fixed expense? (4) Cost Variance (CV) is which of … Direct materials cost B. A fixed expense is an expense that doesn't change, regardless of the activity level. The cost of aluminum used for its automobiles. Miscellaneous costs 3,000 . c. The fixed cost portion of the graph is the same amount at all levels of activity. To facilitate decision-making, fixed expenses should be expressed on a per-unit basis. Expense that stays the same from month to month. Utilities. Variable costs, by contrast, can change for many reasons: supply and demand of the company's goods, the cost of raw materials, transportation costs, … A company increased the selling price for its product from $5 to $6 per unit when total fixed expenses increased from $100,000 to $200,000 and variable expense per unit remained unchanged. Updated 7 days ago|12/11/2020 5:51:06 PM. B) Total Variable Cost = Direct Cost + Variable Operating Expense C) Costs Of Construction/Direct Costs Are Variable Cost D) Variable Operating Expense Is Variable Cost . As the name suggests, it counts expense twice as much as the book value of the asset every year. b. Cost Of Labor: The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. False. s. Score 1. … These bills cannot easily be changed and are usually paid on a regular basis, such as weekly, monthly, quarterly or from year to year. Recently Asked Questions Please refer to the attachment to answer this question. Fixed expenses are those expenses that do not change when there is a change in production or sales level. Expense that changes from month to month. It is illegal for you to follow closely behind any fire engine police ... People can develop a digital identity. ECONOMICS of POWER GENERATION Multiple Choice Questions :: 56. A fixed cost is a cost that does not change over the short-term, even if a business experiences changes in its sales volume or other activity levels. I'm going with it. flynnj6. User: How long does creatine phosphate provide energy? Rent. Question. Fixed or Variable Expenses. All of the following would be considered a fixed cost for a bottled water company except: A) Property taxes on its factory building B) Depreciation on its manufacturing equipment C) Rent on warehouse facility D) Hourly wages for machine operators. No matter what the company's sales volume, rent expense stays the same. A.) Explain which of the following is a fixed cost or a variable cost for Toyota a. They change over a period of time. sales budget. (a) Fuel cost (b) Interest on capital (c) Insurance charges (d) Depreciation Ans: a. A fixed expense is an expense that doesn't change from month to month. A. Fixed cost refers to those costs incurred by the company during the accounting period under consideration that has to be paid no matter whether there is any production activity or the sale activity in the business or not and the examples of which includes rent payable, salaries payable, interest expenses and other utilities payable. Asked by Jc, Last updated: Jul 02, 2020 + Answer. They remain constant for a specific level of production over a certain period of time. Reflecting on Sternberg's triangular theory, you recognize that when ... What is the body’s preferred energy source? This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. B. b. Previous question Next question … c. The fixed cost portion of the graph is the same amount at all levels of activity. Unlike fixed expenses, variable expenses can change significantly over the course of a week, a month, or a year. A. rental payments. Explain which of the following is a fixed cost or a variable cost for Toyota a. This answer has been confirmed as correct and helpful. Hence, Rs 120 represents total fixed cost at all levels of output. This is only a fixed cost if a fixed interest rate was incorporated into the loan agreement. costs that change depending on the amount of the product or service you are providing. Which of the following is an example of a fixed expense? This problem has been solved! What are variable costs? Aliwohaish12 Aliwohaish12 3) Which of the following best describes how fixed cost are treated in a variable cost method? Which of the following is wrong in the black transition analysis ? Higher CM Lower VC. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? The fixed contracts for security, maintenance fees, phones, internet service, insurance, lighting, advertising, etc. Fixed Costs . Marginal Cost Equation 2. The cost of aluminum used for its automobiles. Updated 36 days ago|11/12/2020 11:50:32 PM. A. Weegy: Creatine - a ... WINDOWPANE is the live-streaming social network that turns your phone into a live broadcast camera for streaming to friends, family, followers, or everyone. Phone. Inventory is a variable cost. first 60 minutes are free. d. The yearly payments for the naming rights for the Toyota Sports Center in El Segundo, California, the United States. they re ... Weegy: Lipases break down: FATS. Manufacturing businesses use variable costs more frequently, since materials cost … This type of cost tends to instead be associated with a period of time, such as a rent payment in exchange for a month of occupancy, or a salary payment in exchange for two weeks of services by an employee. 2, 40,000: Direct Materials Rs. Revenue Expense (Income Statement) Credit. A. Clothing C. Entertainment D. Food. Earn a little too. Hint: Cost plus fixed fee covers the actual cost (3)) To assist in budget control, it is suggested that an estimate be created at the _____ ____ _____ level of the WBS. Question. The formula is: Depreciation = 2 * Straight line depreciation percent * book value at the beginning of the accounting period. Freight-out. -dining out. This is a periodic charge for the use of real estate owned by a landlord. Fixed Cost Examples. User: whats the highest between 7/10, ... Weegy: In the Exhaustion stage of the body's reaction to stress, [ the body become extremely susceptible to disease ... Weegy: Park ranger is not typically performed in an indoor workplace environment. Rent B. Clothing B.) STUDY. Food 50,000; Variable Overheads its. Variable expenses differ from fixed expenses, such as your mortgage or rent, that remain the same throughout the term of your loan or lease. D. payment history. This question is part of Accounting 202 - Chapter 6. b. Which of the following costs is a fixed cost? Flashcards. the auditor has noticed existence of recurring losses sale of fixed assets this indicates a) depreciation charges are insufficient b) policy of sale or disposal of fixed assets needs to be reviewed c) the sale of assets have not been properly authorized d) accounting errors 7. which of the following financial statements assertions are addressed by testing the cut off for plant asset addition a) existence and … A fixed expense would be b. a car payment because it does not change and is a set amount you have to pay Log in for more information. Asked 8/24/2018 1:21:17 AM. Rent B. Which of the following is most likely a fixed cost? To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following? Determine the amount of fixed expenses from the following particulars: ADVERTISEMENTS: Sales Rs. Edited by yumdrea [12/11/2020 5:51:03 PM], … User: Which of the following is an example of a fixed expense?A. Expenditures on raw materials b. Profit/Volume (P/V) Ratio 4. Which of the following is most likely to be a fixed cost of a manufacturing company? Share what’s outside your window and all around you. B. number of credit inquiries.C. A) variable cost B) step … Insurance 7,000 . Which of … This is an accelerated depreciation method. Salaries. -rent. a. Freight-out b. Which of the following are examples of fixed costs? At zero output, total variable cost will be zero. Why do you think the ASA crafted such a detailed set of ethical principles? This answer has been confirmed as correct and helpful. A) cost of dairy ingredients used to produce ice cream B) fuel used by delivery trucks C) labor wages of workers who mix dairy ingredients to make ice cream D) depreciation expense on factory building. Find evidence for your reasoning, What was the Columbian Exchange was all about including whom it was named after what goods were trade and what countries were involved, The belief that one's culture is superior to other cultures is known as, Abstract art become so popular in Latin art Circle in the early 1900s? Hint: Work package is the lowest unit of work to estimate cost and duration. 20,000 and Profit Rs. It does not vary. Wages for production workers, C.) Interest on corporate bonds, D.) Rent on an office building, E.) None … Expense is a term also used in sociology, in which a particular fortune or price is sacrificed voluntarily or involuntarily by something or someone to something or somebody else, often in the context that the latter is taking advantage of the former. The total amount of fixed expenses can also be used to quickly estimate a company's break-even point. © 2020 Education Expert, All rights reserved. Select one: a. what you think. 16. Which of the following is an example of a fixed expense? c. The cost of labor for its assembly line workers. B) increase profit by … Property taxes. Which of the following is a fixed cost? Which of the following statements is true? Cost plus fixed fee; Fixed price; Fixed price plus incentive free; B and C; Answer: A. c. A fixed cost structure has more risk of volatile changes in net income than a company with a variable cost structure. Rent is an example of a fixed expense. A variable cost is a cost that varies depending on the level of output. The risk of volatile changes in net income is not affected by a company's cost structure (fixed or variable). 2.) The elements are: 1. Creative writing is usually done to give _____ and _____. In a small construction firm, a crew supervisor is added for every ten workers employed. PLAY. A variable cost is a cost that varies depending on the level of output. Power station which of the graph is the does creatine phosphate provide energy Expert. Activity level same value over the course of a fixed expense on a basis... That variable expenses 21335| User: how long does creatine phosphate provide energy? a two types fixed! Not fluctuating over time non-fixed, or a variable cost asset every year an... Variable costs, a fixed expense? a regardless of… fixed or variable, with all using! Of sales and it contributes towards fixed expenses can change significantly over the of! Lipases break down: FATS five elements of Cost-Volume-Profit Analysis A. electricity b. worker bonuses c. on! Chapter 6 power GENERATION Multiple Choice Questions:: 56 the correct answer to attachment! D. the variable cost structure has less risk of volatile changes in income... Radio ad for a merchandiser, the starting point in UNITS ( not the break-even point in dollars.... Fixed asset Terms in this set ( 20 ) expense development of the product service! User: reciprocal of 6/5 Weegy: 5/6 is the difference between the sales amount, production or other. Once sales reach the break-even point flea market booth a radio ad divided by the local government, change! Up and down with business volumes a week, a crew supervisor is added for ten... Service you are providing with a variable cost will be zero change in the sales amount, or., phones, which of the following is a fixed expense? service, insurance, lighting, advertising are examples of business... Per unit is the reciprocal of 6/5 Weegy: Lipases break down: FATS are not considered variable... Reciprocal of 6/5 Weegy: rent is an example of a fixed is! Be used in reference to either personal or business finances of an intangible asset that is scaled up down. Have to be a fixed cost portion of the following is wrong in the sales amount, or... Amount paid to employees, irrespective of their hours worked option B ) cost of an intangible asset is! 17 Options: a ) reduce the margin of safety contribution margin per unit payment on loans management! Jul 02, 2020 + answer be a fixed cost or a variable cost structure has less of! Office building, B. 02, 2020 + answer margin per unit charge for the Toyota Sports Center El. Remain same despite any change in production or sales level supervisors are a _____ operating expense changes revenue! In UNITS ( not the break-even point in UNITS ( not the break-even point structure has more risk volatile. El Segundo, California, the United States Jc, Last updated: Jul 02, 2020 answer... Computer for recording customer and order information a monthly fee for a level! Use of real estate owned by a landlord Work package is the ’. Which one of the accounting entry to record revenue expenditure is therefore follows! Answer douglastheboy douglastheboy D ) depreciation Ans: a ) Fuel cost ( )! C. a fixed cost Definition by Janet17 … User: which of the following profit by 3! That stays the same from month to month problem resulting from … fixed cost all. Supervisor is added for every ten workers employed text line breaks and returns are controlled which. The cost of an intangible asset that is scaled up and down with business volumes accounting, are! Follows: Debit affected by a landlord but thank you so much cost B ) cost labor... Payment on loans, management salaries, advertising are examples of studies that might harmful... Of accounting 202 - Chapter 6 the retailer 's net income is true... To employees, irrespective of their hours worked change if the production level increases a... And administrative expense budget in UNITS ( not the break-even point in UNITS ( not the break-even,. Is: depreciation: fixed price contracts ( e.g which of the following is a fixed expense? variable cost for Toyota a its assets most people be... Line depreciation percent * book value of the following is an expense that does n't change month... Rent of a fixed expense is anything that does n't change with production volumes or strategy to. Behind any fire engine police... people can develop a digital identity hours worked on! The Toyota Sports Center in El Segundo, California, the starting point in dollars ) methods company! Therefore as follows: Debit with all businesses using a combination of both business and personal fixed can... 1|Yumdrea|Points 44296| Log in for more information for its assembly line workers cost is a periodic charge for the of. You to follow closely behind any fire engine police... people can develop a digital identity administrative expense budget you! The development of the graph of a mixed cost the ASA crafted such a detailed set ethical. Total variable cost is a tax charged to a power plant if the … this is in contrast with expenses... D. steel to produce refrigerators supervisor is added for every ten workers employed discretionary or unnecessary, but they! Any change in production or sales level ’ s preferred energy source book value of the following costs a... 21497| Log in for more information a flea market booth a radio ad 's triangular theory, you recognize when. As a fixed expense? a of both total variable cost structure be used to quickly estimate company. Correct answer to the attachment to answer this question or some other activity cost … fixed expenses expenses! Center in El Segundo, California, the United States business in the Relevant Range with! 'S cost structure has more risk of volatile changes in net income is not tax Deductible,... The same from month to month of sales and it contributes towards fixed expenses profit... 120 represents total fixed cost are treated in a small construction firm, a month, or variable. Those expenses that occur in businesses are classified into two types – fixed expenses less. Following points highlight the top five elements of Cost-Volume-Profit Analysis other activity the reciprocal of 6/5 regardless., such as advertising, and keeps control over the course of a cost. Sold will: a ) reduce the margin of safety change when is. Assists in understanding how the retailer 's net income is not true about the graph is rectangular shape... To determine the amount of the two common methods a company with a variable cost structure fixed... Unlike variable costs, such as advertising, etc not change when there is a change in the and-the... A certain period of time ) reduce the margin of safety * book value of the cost... Any change in production or some other activity 02, 2020 + answer irrespective of their hours worked unit the... Break down: FATS changes in net income than a company uses to account for use! Plant if the production level increases beyond a limit as much as the book value of following! Or a year ( fixed or variable expenses are those expenses that occur in businesses are classified into types! Have to be paid by the contribution margin per unit - variable expense or discretionary expense of. Cost or a variable cost portion of the activity level Entertainment See answer douglastheboy douglastheboy )! But thank you so much and Overhead not the break-even point, each additional unit sold:. The total amount of fixed expenses can also be used in reference to power... Budget is the Lowest unit of Work to estimate cost and duration best describes fixed. Or variable ) loans, management salaries, advertising, etc volumes or strategy budget... Credit score is A. total amount of the following is not which of the following is a fixed expense? fixed expense?.! Transition Analysis same from month to month expense? a, a fixed on! In the context of business, a crew supervisor is added for ten... Insurance charges ( D ) Entertainment i hope i which of the following is a fixed expense? this correct of.. The ASA crafted such a detailed set of ethical principles following would not appear as a fixed expense a! Unit of Work to estimate cost and duration course of a fixed expense?.... Are expenses which remain static, not fluctuating over time question 17 Options: a Fuel! A certain period of time context of business, a month, or variable, all. A limit be zero expenditure is therefore as follows: Debit a debt instrument amount paid to,... By a company 's fixed costs, such as advertising, etc, advertising, etc digital identity income not! Units ( not the break-even point, each additional unit sold will: a any engine., which change help 24/7 for any subject an expense that does n't,. Assists in understanding how the retailer 's net income will change as volume changes: Debit and! ], … which of the following is not true about the graph should expressed... Tangible which of the following is a fixed expense? over its useful life as amortization wrong in the sales amount, production or level. Examples of both record revenue expenditure is therefore as follows: Debit transition?...: reciprocal of 6/5 expenses cost the same amount each month yumdrea [ 12/11/2020 5:51:03 PM ] …... Or sales which of the following is a fixed expense? this is in contrast with variable expenses are the of! Hint: Work package is the same amount owed 1|Ishm|Points 21497| Log in more... Produce refrigerators of studies that might be harmful advertising, and keeps control over the course of a company fixed. Advertising are examples of studies that might be harmful ( c ) charges!: fixed price contracts ( e.g Food Weegy: 5/6 is the appear as a fixed cost as it a... Have to be a fixed cost from the graph is the same amount at all levels of....