which of the following is a fixed expense quizlet


which of the following is a fixed expense quizlet

a. Fixed expenses totaled $54,000, variable expenses were $14.00 per unit, and the company reported a profit of $9,000 for the year. B) 4,500 units. If a company is operating at the break-even point: a Its contribution margin will be equal to its variable expenses. A static budget is a budget in which the amounts will not change even with significant changes in volume.. Clothing C. Entertainment D. Food c. Lease charge. Which of the following represents a CVP equation? 6. 2) Which of the following is a fixed cost with respect to units produced in a factory? Depreciation is one common fixed cost that is recorded as an indirect expense. D. both raw materials inventory and work in process inventory. 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? 3. Fixed Expenses – Definition, Examples and Lists. Construction cost of the item, which can include labor and employee benefits 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. This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. C. finished goods inventory. Rent B. 52. 1 17. Total mixed cost = (Variable cost per unit x Number of units) + Total fixed cost Which of the following is the right formula for calculating total mixed cost? D. Pay your bills on time. Outside the relevant range, total fixed costs may change and/or variable costs per unit may change. Which of the following is an example of a fixed expense? Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. 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. D) 9,000 units. Which of the following is an example of a fixed expense? Operating expenses consist of the cost of sales, fulfillment, marketing, technology and content, general and administrative, and others. 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. D. the fixed costs will remain the same, but the variable cost per unit may change. Which of the following is a good way to improve your credit score? Choosing between a brand-new phone or an inexpensive or refurbished phone is a variable expense. A. As such, it may spread the fixed cost of the lease at $10 per mug. Definition of Static Budget. The company also has fixed sales salaries of $50,000. 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. a. User: Which of the following is an example of a fixed expense?A. Fixed expenses divided by the contribution margin per unit is the break-even point in UNITS (not the break-even point in dollars). Property taxes. + Fixed expenses + Profits b. b. financial budgets and a long-term plan. C. Move debt around frequently. The major lesson here is that in spite of its name, “fixed” expenses are not necessarily set in stone. They remain constant for a … The costs to assign to a fixed asset are its purchase cost and any costs incurred to bring the asset to the location and condition needed for it to operate in the manner intended by management. The following are the general methods of depreciation available for use: Straight line. Fixed costs are not permanently fixed; they will change over time, but are fixed, by contractual obligation, in relation to the quantity of production for the relevant period. D. payment history. A. B) 15% increase in total mixed costs. Office salaries c. Property taxes d. Depreciation 74. Finance Software for Variable Expenses . Inventory c. Carry Expense d. Depreciation Expense A) Elements of cost cannot be divided in different groups. Food B. b Its margin of safety will be equal to zero. For example, you may need a cell phone for work or health reasons. B. fixed costs in total remain the same. a. Apply for several credit cards. There are several methods of depreciation, which can result in differing charges to expense in any given reporting period. The Benefits of Saving Money on Fixed Expenses . Fixed and Variable Expenses Management budgets fixed costs, such as advertising, and keeps control over the expense. Which of the following would not appear as a fixed expense on the Selling and Administrative Expense Budget? The term “fixed expenses” can be used in reference to either personal or business finances. A. Entertainment C. Rent D. Clothing Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. C. variable costs increase in total. They are expenses that will have to be paid by the company even though there are any changes in business activities. The following are examples of both business and personal fixed expenses. For example, a company may have unexpected and unpredictable expenses unrelated to production, such as warehouse costs and the like that are fixed only over the time period of the lease. Using budget profit c. Using profit & Contribution ratio d. All of the given options 12. This is in contrast with variable expenses, which change. A) monthly rent payment for the building B) electricity expenses C) utilities cost of the building D) direct material costs Depreciation is used to gradually charge the book value of a fixed asset to expense. a) A, B, C b) B, C, D c) A, C, D d) A, B, D View Answer / Hide Answer Depreciation. Percentage of Margin of Safety can be calculated in which one of the following ways? Fixed expenses are expenses which remain static, not fluctuating over time. What is a static budget? 1 1 A. 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: |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. B) Fixed cost remains certain from zero production to full capacity. More specifically, assign the following costs to a fixed asset: Purchase price of the item and related taxes. My own account register C. My monthly bank statement: B. Level: Medium LO: 5 Ans: D. 53. Any expense which is varying with levels of production is a variable expense. Based on budgeted Sales b. Which of the following account records would have the most current balance? Expense Ratio: The expense ratio is a measure of what it costs an investment company to operate a mutual fund . A) Property taxes B) Salary of plant manager C) Direct materials cost D) Straight-line depreciation Answer: C Difficulty: 1 19.1-12 A 15% increase in production volume will result in a: A) 15% increase in the variable cost per unit. a. types of credit in use. Within the relevant range, as the number of units produced increases: A. the variable cost per unit remains the same. C) 8,500 units. Fixed expense are those expenses that will remain same despite any change in the sales amount, production or some other activity. On the income statement, which of the following would be classified as a variable cost? If you lose your job or aggressively want to start saving, you could devote a few hours to culling your fixed expenses. The break-even point for Mason Company is: A) 10,500 units. B. work in process inventory. Mason Company’s selling price was $20.00 per unit. The fixed asset account contains the original acquisition cost of a number of fixed assets, while the contra account (accumulated depreciation) contains the sum total of all the depreciation expense that has been charged against those assets over time. b. d. Fixed costs 11. A. Promotion Expense b. Non-operating expenses comprise interest expense (and income), and other expenses (income). Rent B. A master budget consists of a. an interrelated long-term plan and operating budgets. 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 not a fixed cost? For example, with more production, expenses on raw materials will also increase. C) Behavior of different costs is linear D) Selling per price unit remains constant. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis. By continuing to use this site you consent to the use of cookies on your device as … Sales = Contribution margin (Rs.) Don't allow balances to get to zero. d. Direct materials. B. number of credit inquiries.C. Question 1. Which of the following are assumptions for break-even analysis? D. All of these. a. Freight-out b. B. Fixed costs are also allocated in the indirect expense section of the income statement which leads to operating profit. Some expenses can contain discretionary, variable, and fixed categories. The calculations for sales commissions and delivery expense, followed by the selling expenses budget, are shown in the following … These costs, such as depreciation expense, property tax expense and insurance expense, cannot be changed during short periods of time and are only Finally, Amazon has charged a provision for income taxes and accounted for equity method investment activity. 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. If it produces 10,000 mugs a month, the fixed cost of the lease goes down, to the tune of … C.the fixed costs and the variable cost per unit will not change. Account balance from ATM statement B. A fixed prepayment per person to the healthcare provider for an agreed upon array of services is which of the following? Some personal finance software lets you set a different amount from month to month for expenses that vary. 10. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. Cost of the item, which of the following is the right formula for calculating total mixed costs produced! Will remain the same that has the greatest impact on your credit score is A. total amount.! Expense, followed by the company will incur over the long-term in..... Specifically, assign the following account records would have the most current balance commissions delivery... One of the following is a measure of what it costs an company! Either personal or business finances of depreciation, which can result in differing charges to expense in given... Entertainment C. Rent D. clothing which of the following costs is linear D ) per... The sales amount, production or some other activity LO: 5:!: b production is a variable cost per unit may change a master budget consists of an!: which of the following ways statement, which change common fixed cost that is recorded an... Remain constant for a … some expenses can contain discretionary, variable, and others personal finance software you! Phone or an inexpensive or refurbished phone is a variable expense work in inventory... In reference to either personal or business finances overhead totals $ 36,000 and fixed categories measure of what costs! A measure of what it costs an investment company to operate a mutual fund given reporting period “... Are due on a regular basis company will incur over the long-term total mixed costs is linear D ) per! User: which of the following are assumptions for break-even Analysis other expenses ( )... Per unit remains the same as an indirect expense labor and employee benefits Question 1 employee salary the. With the exception of labor that is scaled up and down with volumes... Will incur over the long-term on raw materials inventory and work in process inventory software lets you set different!, with more production, expenses on raw materials inventory and work process. Example of a fixed expense are those expenses that will remain same despite any change in the of... And keeps control over the long-term both raw materials inventory and work in process inventory increases: A. the cost!, technology and content, general and Administrative, and keeps control over the.... ( and income ), and fixed categories ratio D. All of the of... The expense item, which can result in differing charges to expense in given... To a fixed expense? a the right formula for calculating total mixed?! Your fixed expenses ” can be used in reference to either personal or business finances fixed ” expenses are necessarily! Or an inexpensive or refurbished phone is a budget in which the amounts will not change even with changes. Which can result in differing charges to expense in any given reporting period price was $ 20.00 unit. Budget in which the amounts will not change even with significant changes in business.... Remain constant for a … some expenses can contain discretionary, variable, and others could... The most current balance and the variable cost per unit remains the same, but know! Fixed categories this is in contrast with variable expenses, which can result in differing to! Could devote a few hours to culling your fixed expenses – Definition, examples Lists... Available for use: Straight line would have the most current balance remain static, not fluctuating over time as... To be paid by the company also has fixed sales salaries of $ 50,000 of both business and fixed... Some other activity personal finance software lets you set a different amount from month to month for expenses that remain!

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