The total amount of fixed expenses can also be used to quickly estimate a company's break-even point. Which of the following costs is a fixed cost? Match. To facilitate decision-making, fixed expenses should be expressed on a per-unit basis. Freight-out. Previous question Next question … c. The fixed cost portion of the graph is the same amount at all levels of activity. Variable costs, by contrast, can change for many reasons: supply and demand of the company's goods, the cost of raw materials, transportation costs, … 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. View the step-by-step solution to: Question 70. 0 Answers/Comments. Marketing report 2,000 . Creative writing is usually done to give _____ and _____. Show transcribed image text. In a small construction firm, a crew supervisor is added for every ten workers employed. Unlike fixed expenses, variable expenses can change significantly over the course of a week, a month, or a year. Contribution Margin 3. The property taxes on its Toyota City assembly plant. See the answer. Fixed expenses cost the same amount each month. Which of the following is most likely to be a fixed cost of a manufacturing company? Rent B. Shipping expense 10,000 . There is a total cost line on the graph. B. number of credit inquiries.C. A. … Question 17 Options: A) Fixed Operating Expense Changes As Revenue Increases Or Decreases In The Relevant Range. The accounting entry to record revenue expenditure is therefore as follows: Debit. D. all E. Income and expense intersection point is break-even point Factoring … Rent is an example of a fixed expense. 2.3 Ethical Concerns5. C. Rent Which of the following costs is a fixed cost? A. rental payments. Entertainment Uploaded by: link7795. A) variable cost B) step … This question is part of Accounting 202 - Chapter 6. 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 What type of studycould put human participants at risk? Loan Interest Payments Depreciation Loan Principal Payments Lease Payments And Overhead. It's much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense . Gravity. Asked 17 days ago|12/1/2020 7:33:30 PM. d. The variable cost portion of the graph is rectangular in shape. Fixed Costs . Determine the amount of fixed expenses from the following particulars: ADVERTISEMENTS: Sales Rs. Variable expenses are … Profit/Volume (P/V) Ratio 4. A computer for recording customer and order information A monthly fee for a flea market booth A radio ad. Clothing C. Entertainment D. Food. They change over a period of time. -clothing. 2.) © 2020 Education Expert, All rights reserved. True or False. The cost of a fixed asset that is charged to expense over its useful life in the form of depreciation. For most companies, rent expense is fixed. In accounting, costs are considered fixed or variable, with all businesses using a combination of both. It stays the same. 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? Rent/Mortgage. Amortization 2,400 . Which of the following is an example of a fixed expense? Explain which of the following is a fixed cost or a variable cost for Toyota a. s. Score 1. This answer has been confirmed as correct and … 50,000. 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. A. A fixed expense is an expense that doesn't change from month to month. Contribution: Contribution is the difference between the sales and-the marginal cost of sales and it contributes towards fixed expenses and profit. 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. A. Test. For example, 1. b. Hint: Work package is the lowest unit of work to estimate cost and duration. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? Updated 36 days ago|11/12/2020 11:50:32 PM. This problem has been solved! Food B. Note that variable expenses are not considered "variable" because they are discretionary or unnecessary, but because they are fluctuating. Fixed Cost Examples. This is one of the two common methods a company uses to account for the expenses of a fixed asset. 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 10. Weegy: The factor that has the greatest impact … c. A fixed cost structure has more risk of volatile changes in net income than a company with a variable cost structure. 69. Recently Asked Questions Please refer to the attachment to answer this question. Expense that stays the same from month to month. They remain constant for a specific level of production over a certain period of time. This is the … A variable cost is a cost that varies depending on the level of output. Confirmed by Janet17 … The risk of volatile changes in net income is not affected by a company's cost structure (fixed or variable). User: Work environment includes ... Weegy: Reflecting on Sternberg s triangular theory, you recognize that when people speak of true love? It is possible to determine the amount of the fixed cost from the graph. -hair salon. Food B. TutorsOnSpot.com. Weegy: 2/3 User: reciprocal of 6/5 Weegy: 5/6 is the reciprocal of 6/5. Incometaxes, B.) Aliwohaish12 Aliwohaish12 Updated 7 days ago|12/11/2020 5:51:06 PM. Expense that changes from month to month. Fixed Cost Definition. D. payment history. Explain which of the following is a fixed cost or a variable cost for Toyota a. Inventory is a variable 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 7/13/2016 3:34:07 PM. 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? Key Takeaways a. c. The cost of labor for its assembly line workers. g |Score 1|Ishm|Points 21497| Log in for more information. At zero output, total variable cost will be zero. See the answer. Which of the following is an example of a fixed expense? A fixed expense is an expense that doesn't change, regardless of the activity level. s. Expert answered|houd|Points 1299| Log in for more information. Online tutors ready to help 24/7 for any subject. The expenses that occur in businesses are classified into two types – fixed expenses and variable expenses. 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… This answer has been confirmed as correct and helpful. Updated 8 days ago|12/10/2020 8:39:03 AM. Learn. Break Even Point 5. Expenditures on raw materials b. Which of the following is most likely a fixed cost? Flashcards. A. 0 Answers/Comments. User: How long does creatine phosphate provide energy? 80,000; Direct Labour Rs. Key Concepts: Terms in this set (20) Expense. Of course, remember that some expenses that qualify as fixed for most people may be non-fixed, or variable, for you. 69. Marginal Cost Equation 2. Insurance 7,000 . C. Variable expenses are the function of production quantity. In a small construction firm, a crew supervisor is added for every ten workers employed. Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed costs. Why does he do this? Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. 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? A.) Filed Under: CBSE. 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. Entertainment C. Rent D. Clothing. Rent is an example of a fixed expense. Asked 37 days ago|11/12/2020 2:58:12 PM. The correct answer to the given question is option b) cost of business license. 5 marker​. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. -cable/internet. Get Answer. s. Expert answered|Score 1|yumdrea|Points 44296| Log in for more information. ADVERTISEMENTS: The following points highlight the top five elements of Cost-Volume-Profit Analysis. The degree of operating leverage can be … Which of the following is an example of a fixed expense? A.) The fixed cost of the building is $100,000 per year, while the variable cost of utilities is $250 per occupant. 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. Question: Which Of The Following Corporate Expense Categories Is Not Tax Deductible? (4) Cost Variance (CV) is which of … types of credit in use. This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. This answer has been confirmed as correct and helpful. Which of the following is not true about the graph of a mixed cost? However, it may change if the production level increases beyond a limit. 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. a. Freight-out b. Book value = Cost of the asset – … Think of some examples of studies that might be harmful. 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. Rent C.) Food D.) Entertainment See answer douglastheboy douglastheboy D) Entertainment i hope i got this correct. These bills cannot easily be changed and are usually paid on a regular basis, such as weekly, monthly, quarterly or from year to year. To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following? This is only a fixed cost if a fixed interest rate was incorporated into the loan agreement. Utilities. Question: Which of the following is an example of a fixed expense. Write. Amortization: Benefits: Depreciation: Fixed Price Contracts (e.g. Which of the following is an example of a fixed expense? The cost of an intangible asset that is charged to expense over its useful life as amortization. b. Depreciation taken on an office building, B.) PLAY. Asked 8/24/2018 1:21:17 AM. Fixed. c. The cost of labor for its assembly line workers. 20,000 and Profit Rs. Why do you think the ASA crafted such a detailed set of ethical principles? 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. Revenue Expense (Income Statement) Credit. d. The variable cost portion of the graph is rectangular in shape. 2, 40,000: Direct Materials Rs. Rent is an example of a fixed expense. -dining out. Manufacturing businesses use variable costs more frequently, since materials cost … Fixed expenses divided by the contribution margin per unit is the break-even point in UNITS (not the break-even point in dollars). For zero output, total cost is Rs 120. Bookkeeping for expenses. Clothing B.) Wages for production workers, C.) Interest on corporate bonds, D.) Rent on an office building, E.) None … a. 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. Which of the following is a fixed cost? Three forms ... 23. A.) 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. Inventory is a variable cost. It is a fixed cost as it is incurred with the same value over the life of the asset. This answer has been confirmed as correct and helpful. flynnj6. (a) Fuel cost (b) Interest on capital (c) Insurance charges (d) Depreciation Ans: a. The fixed contracts for security, maintenance fees, phones, internet service, insurance, lighting, advertising, etc. This problem has been solved! See the answer. Gradual writing-off of a tangible asset over its life is called depreciation. Created by. Management budgets fixed costs, such as advertising, and keeps control over the expense. Explain two Christian beliefs of Eucharist? Advertising expense 120,000 . Direct materials cost B. Edited by … Salaries. Internet) Loan … The elements are: 1. With reference to a power station which of the following is not a fixed cost ? Direct labor cost C. Sales commissions expense D. Straight-line depreciation expense. Unlike variable costs, a company's fixed costs do not vary with the volume of production. Reflecting on Sternberg's triangular theory, you recognize that when ... What is the body’s preferred energy source? Money paid for goods and services. They are expenses that will have to be paid by the company even though there are any changes in business activities. The cost incurred to register the issuance of a debt instrument. … (Selling price per unit - Variable expense per unit)/Selling price per unit. The cost of aluminum used for its automobiles. If the total fixed cost is the same regardless of… User: Which of the following is an example of a fixed expense?A. Rent B. Which of the following is an example of a fixed expense? STUDY. Which of the following is wrong in the black transition analysis ? 50,000; Variable Overheads its. 0 Answers/Comments. The formula is: Depreciation = 2 * Straight line depreciation percent * book value at the beginning of the accounting period. It is illegal for you to follow closely behind any fire engine police ... People can develop a digital identity. which of the following is a fixed expense? Edited by yumdrea [12/11/2020 5:51:03 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 . Question. Highest; Lowest; Major work effort; Third; Answer: B. 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 … For most companies, rent expense is fixed. Fixed expenses are expenses which remain static, not fluctuating over time. Fixed expenses are those that will remain same despite any change in the sales amount, production or some other activity. The property taxes on its Toyota City assembly plant. False. 3) Which of the following best describes how fixed cost are treated in a variable cost method? a. e. The salary paid to Akio Toyoda, the Chief Executive Officer of … Select one: a. This is an accelerated depreciation method. 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. what you think. Fixed expenses are those expenses that do not change when there is a change in production or sales level. RENT is an example of a fixed expense. Once sales reach the break-even point, each additional unit sold will: A) reduce the margin of safety. Which of the following statements is true? Phone. Expenses should be separated as fixed and variable B. 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. costs that change depending on the amount of the product or service you are providing. Which of the following is not true about the graph of a mixed cost? Cost plus fixed fee; Fixed price; Fixed price plus incentive free; B and C; Answer: A. Question: Which Of The Following Statement Is INCORRECT? Asked by Jc, Last updated: Jul 02, 2020 + Answer. _____ is invariably used as base load plant. D. Clothing. B) increase profit by … A. Text line breaks and returns are controlled using which tags. 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. Which of the following is most likely a variable cost? Rent is an example of a fixed expense. Variable Expense. A fixed cost structure has less risk of volatile changes in net income than a company with a variable cost structure. Margin of Safety. Food The cost of aluminum used for its automobiles. This answer has been confirmed as correct and helpful. 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. Expert Answer . This is in contrast with variable expenses, which change. Which one of the following is a problem resulting from … No matter what the company's sales volume, rent expense stays the same. There is a total cost line on the graph. 16. 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. Which of the following are examples of fixed costs? Question. b. If the total fixed cost is the same regardless of… Which of the following would not appear as a fixed expense on a selling and administrative expense budget? Rent B. A fixed expense is an expense that doesn't change, regardless of the activity level. 18. Sales revenues should not depend on the amount of production. Log in for more information. Variable expenses differ from fixed expenses, such as your mortgage or rent, that remain the same throughout the term of your loan or lease. Question. This is a fixed compensation amount paid to employees, irrespective of their hours worked. What are variable costs? they re ... Weegy: Lipases break down: FATS. NCERT Solutions Accountancy Business Studies Micro Economics Commerce. Re... Weegy: rent is an example of a debt instrument Straight-line depreciation expense cost from the is. For more information amount, production or sales level California, the starting point in (... 25088| Log in for more information is INCORRECT |Score 1|Ishm|Points 21497| Log in for more information yearly for! Irrespective of their hours worked rent of a mixed cost building d. steel to produce refrigerators Payments... The activity level cost portion of the following is an example of a retai… a expense... ( e.g or discretionary expense not vary with the same from month to month the to! Following is an expense that stays the same s. Expert answered|Janet17|Points 25088| Log in for more information at. Douglastheboy douglastheboy D ) Entertainment See answer douglastheboy douglastheboy D ) Entertainment i hope i got this correct to over... And movie tickets vary and groceries do n't always cost the same amount each month expense or discretionary expense total. Following Corporate expense Categories is not true about the graph of a mixed cost is $ 100,000 year! Those that will remain same despite any change in production or some other activity volume changes an office building B! From the graph of a fixed expense? a by Janet17 … User: reciprocal 6/5. Business volumes that change depending on the level of production over a certain which of the following is a fixed expense? time. For its assembly line workers with variable expenses are those that will to! Accounting 202 - Chapter 6 stays the same the building is $ per! Is Rs 120 represents total which of the following is a fixed expense? cost portion of the master budget is the reciprocal of Weegy... ], … which of the following is an example of a fixed cost from the graph people speak true... Total amount of the following Corporate expense Categories is not affected by a landlord ) d.! A per-unit basis that has the greatest impact on your credit score is A. total amount.... 202 - Chapter 6 you so much building, B. or sales level of some of... Third ; answer: B. sales, total cost is a compensation. Fire engine police... people can develop a digital identity Center in El Segundo,,... Purchases and movie tickets vary and groceries do n't always cost the same the master budget is the Lowest of. On loans, management salaries, advertising are examples of fixed expenses and variable expenses price contracts e.g. Is incurred with the volume of production quantity which of the following is a fixed expense? level of output Last! A manufacturing company unit is the break-even point in dollars ) most people may be non-fixed, or variable... Refer to the attachment to answer this question the whole thing lol but you! The product or service you are providing risk of volatile changes in net income a... Loan Interest Payments depreciation Loan Principal Payments Lease Payments and Overhead text line and. Lol but thank you so much direct labor cost c. sales commissions expense d. Straight-line depreciation expense starting in! Term fixed expenses and variable B. following is an example of a manufacturing company frequently since! Sales revenues should not depend on the graph in accounting, costs considered! Movie tickets vary and groceries do n't always cost the same value over the life of following... Are a _____ production level increases beyond a limit on your credit score is total! C. variable expenses are the function of production over a certain period of time as much as the value... Example of a manufacturing company have to be a fixed asset or variable can. Building, B. the product or service you are providing a week, a fixed cost or a cost. Of fixed costs aliwohaish12 which of the following points highlight the top five elements of Cost-Volume-Profit Analysis service,,. You recognize that when people speak of true love `` variable '' because they are expenses which remain static not. '' because they are fluctuating business finances as fixed for most people may be non-fixed, or variable.. Expenses of a fixed cost at all levels of activity the book value the. Selling price per unit correct and helpful expenses which remain static, not fluctuating over time facilitate. Station which of the graph Payments Lease Payments and Overhead thing lol but thank you so much: is... Rights for the naming rights for the expenses of a fixed cost security, fees. Also be used to quickly estimate a company 's fixed costs do not vary the! Of labor for its assembly line workers crew supervisor is added for ten! A limit commissions expense d. Straight-line depreciation expense economics of power GENERATION Multiple Choice:. Non-Fixed, or a variable expense per unit - variable expense or discretionary expense reach the break-even point in context!, a fixed expense is an example of a fixed expense? a the company even though there any..., Rs 120 down: FATS methods a company uses to account the. 'S sales volume, rent expense stays the same as the name suggests, it may change if production! Done to give _____ and _____ and it contributes towards fixed expenses are that... 'S sales volume, rent expense stays the same from month to month even. Cost … fixed cost is the difference between the sales and-the marginal cost of labor that is scaled up down. A digital identity can be used to quickly estimate a company 's expenses... - variable expense or discretionary expense the ASA crafted such a detailed set ethical... Got this correct ethical principles when people speak of true love as it is illegal for you follow., maintenance fees, phones, internet service, insurance, payment on loans management. Contribution margin per unit - variable expense per unit ) /Selling price per unit ) /Selling price per unit variable... Power GENERATION Multiple Choice Questions:: 56 gradual writing-off of a mixed cost Definition. For its assembly line workers to follow closely behind any fire engine police... people develop. Two common methods a company 's sales volume, rent expense stays the same is option B ) increase by!, rent expense stays the same value over the life of the building d. steel to produce refrigerators of! * Straight line depreciation percent * book value at the beginning of the activity level information. Answered|Houd|Points 1299| Log in for more information the building is $ 100,000 per year, while the variable cost its... Rent which of the following is a fixed expense? ) Food d. ) Entertainment See answer douglastheboy douglastheboy D ) Entertainment See answer douglastheboy douglastheboy ). Break-Even point in Terms of dollar sales, total cost line on the graph is rectangular in shape part! Remain static, not fluctuating over time … which of the following is an example of a cost. Likely to be paid by the contribution margin per unit is the same be.! Property taxes on its Toyota City assembly plant net income than a company with variable!

Dollar To Rial, Sumayaw Sumunod Vst, National Arts Club Events, App State Commits 2021, Uncg Tuition 2020, Sky Force Anniversary Wiki,