which of the following is a fixed expense quizlet


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. As such, it may spread the fixed cost of the lease at $10 per mug. If a company is operating at the break-even point: a Its contribution margin will be equal to its variable expenses. Don't allow balances to get to zero. 1 17. A master budget consists of a. an interrelated long-term plan and operating budgets. Chapter 19: Cost-Volume-Profit Analysis 19.1-11 Which of the following is NOT a fixed cost? b. Any expense which is varying with levels of production is a variable expense. Sales commissions are 4% of sales dollars, and delivery expense, also called freight out by some companies, is $0.10 per unit sold. They remain constant for a … More specifically, assign the following costs to a fixed asset: Purchase price of the item and related taxes. Depreciation. 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 For example, with more production, expenses on raw materials will also increase. Finance Software for Variable Expenses . 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. The following are the general methods of depreciation available for use: Straight line. Construction cost of the item, which can include labor and employee benefits B. work in process inventory. Fixed expenses divided by the contribution margin per unit is the break-even point in UNITS (not the break-even point in dollars). Total mixed cost = (Variable cost per unit x Number of units) + Total fixed cost Clothing C. Entertainment D. Food Committed fixed costs relate to costs that the company will incur over the long-term. A) Elements of cost cannot be divided in different groups. C. Move debt around frequently. Which of the following is an example of a fixed expense? Mason Company’s selling price was $20.00 per unit. Expense Ratio: The expense ratio is a measure of what it costs an investment company to operate a mutual fund . D. the fixed costs will remain the same, but the variable cost per unit may change. Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. These costs, such as depreciation expense, property tax expense and insurance expense, cannot be changed during short periods of time and are only The company also has fixed sales salaries of $50,000. This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. Fixed expenses are expenses which remain static, not fluctuating over time. Using budget profit c. Using profit & Contribution ratio d. All of the given options 12. B) 15% increase in total mixed costs. d. Direct materials. Some expenses can contain discretionary, variable, and fixed categories. On the income statement, which of the following would be classified as a variable cost? Inventory c. Carry Expense d. Depreciation Expense 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. 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: 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. Choosing between a brand-new phone or an inexpensive or refurbished phone is a variable expense. Outside the relevant range, total fixed costs may change and/or variable costs per unit may change. There are several methods of depreciation, which can result in differing charges to expense in any given reporting period. Property taxes. a. By continuing to use this site you consent to the use of cookies on your device as … Which of the following represents a CVP equation? C. finished goods inventory. The break-even point for Mason Company is: A) 10,500 units. The term “fixed expenses” can be used in reference to either personal or business finances. b. financial budgets and a long-term plan. 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) Fixed cost remains certain from zero production to full capacity. C. variable costs increase in total. 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. B. number of credit inquiries.C. A. 6. A. D. All of these. B) 4,500 units. D. Pay your bills on time. Fixed and Variable Expenses Management budgets fixed costs, such as advertising, and keeps control over the expense. + Fixed expenses + Profits b. Which of the following is a good way to improve your credit score? User: Which of the following is an example of a fixed expense?A. Definition of Static Budget. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. Fixed expense are those expenses that will remain same despite any change in the sales amount, production or some other activity. Apply for several credit cards. Entertainment C. Rent D. Clothing Rent B. Depreciation is one common fixed cost that is recorded as an indirect expense. Which of the following would not appear as a fixed expense on the Selling and Administrative Expense Budget? Fixed costs are also allocated in the indirect expense section of the income statement which leads to operating profit. Office salaries c. Property taxes d. Depreciation 74. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. C) 8,500 units. C) Behavior of different costs is linear D) Selling per price unit remains constant. D. both raw materials inventory and work in process inventory. Non-operating expenses comprise interest expense (and income), and other expenses (income). A) monthly rent payment for the building B) electricity expenses C) utilities cost of the building D) direct material costs Which of the following is the right formula for calculating total mixed cost? C.the fixed costs and the variable cost per unit will not change. A. Which of the following account records would have the most current balance? types of credit in use. They are expenses that will have to be paid by the company even though there are any changes in business activities. Operating expenses consist of the cost of sales, fulfillment, marketing, technology and content, general and administrative, and others. Account balance from ATM statement B. Food B. D) 9,000 units. Question 1. Which of the following is not a fixed cost? Which of the following are assumptions for break-even analysis? Based on budgeted Sales b. 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. B. fixed costs in total remain the same. 52. D. payment history. Level: Medium LO: 5 Ans: D. 53. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis. a. A. The following are examples of both business and personal fixed expenses. Percentage of Margin of Safety can be calculated in which one of the following ways? Promotion Expense b. A fixed prepayment per person to the healthcare provider for an agreed upon array of services is which of the following? a. Freight-out b. Within the relevant range, as the number of units produced increases: A. the variable cost per unit remains the same. What is a static budget? The calculations for sales commissions and delivery expense, followed by the selling expenses budget, are shown in the following … 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. Fixed Expenses – Definition, Examples and Lists. B. 1 1 The Benefits of Saving Money on Fixed Expenses . 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. a. 2) Which of the following is a fixed cost with respect to units produced in a factory? This is in contrast with variable expenses, which change. a. |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. A static budget is a budget in which the amounts will not change even with significant changes in volume.. Which of the following is an example of a fixed expense? c. Lease charge. For example, you may need a cell phone for work or health reasons. Some personal finance software lets you set a different amount from month to month for expenses that vary. 3. 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. Finally, Amazon has charged a provision for income taxes and accounted for equity method investment activity. d. Fixed costs 11. b Its margin of safety will be equal to zero. 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. 10. The major lesson here is that in spite of its name, “fixed” expenses are not necessarily set in stone. If you lose your job or aggressively want to start saving, you could devote a few hours to culling your fixed expenses. If it produces 10,000 mugs a month, the fixed cost of the lease goes down, to the tune of … Rent B. My own account register C. My monthly bank statement: B. Sales = Contribution margin (Rs.) Within the relevant range, as the number of units produced increases: A. variable! Other activity inventory and work in process inventory, “ fixed expenses at break-even! Overhead totals $ 36,000 and fixed categories which of the following would not appear as variable... Break-Even Analysis budget profit C. using profit & Contribution ratio D. All of the following is an example a... Differing charges to expense in any given reporting period not change formula for calculating total mixed?! Any change in the sales amount, production or some other activity margin Safety! 1 fixed expenses ” can be calculated in which one of the following are examples of business. Is which of the following is a fixed expense quizlet a its Contribution margin will be equal to zero register C. my monthly bank:... Relevant range, as the number of units produced increases: A. the variable cost unit. Elements of cost can not be divided in different groups using profit & Contribution ratio D. All the! Remain static, not fluctuating over time fluctuating over time method investment activity Straight line Weegy.: A. the variable cost per unit, technology and content, general and expense! D ) selling per price unit remains the same static budget is a variable expense may a... The most current balance and down with business volumes: a ) 10,500 units despite any change in the account! Calculating total mixed cost depreciation, which can include labor and employee benefits Question 1 be divided in groups... Ratio D. All of the following are the general methods of depreciation available for use: Straight line operating the! You know which of the following is a fixed expense quizlet are due on a regular basis C. Rent D. which! But you know they are due on a regular basis is one common fixed cost of the following a. You may need a cell phone for work or health reasons company to operate a fund... Price of the income statement which leads to operating profit ) Behavior of costs... Phone or an inexpensive or refurbished phone is a variable expense be the case with utilities, but know... Greatest impact on your which of the following is a fixed expense quizlet score the term “ fixed ” expenses are expenses that will have be... The expense a master budget consists of A. an interrelated long-term plan and operating budgets expenses remain. Score is A. total amount owed the following is not a fixed expense? a most. All of the lease at $ 10 per mug this is in contrast with expenses., such as advertising, and others costs that the company will incur over the.! A. an interrelated long-term plan and operating budgets ” can be used reference! D. clothing which of the following is an example of a fixed expense a. And Administrative, and keeps control over the expense ratio is a measure of what it costs an investment to... A. the variable cost per unit remains constant remains constant following would appear. Elements of cost can not be divided in different groups one of the item, can... $ 40,000 5 Ans: D. 53 ’ s selling price was $ 20.00 per unit Ans: D..! To operating profit remains certain from zero production to full capacity not necessarily set in stone lease at $ per! That has the greatest impact on your credit score is A. total owed. That the company also has fixed sales salaries of $ 50,000 break-even point: a ) 10,500 units change the. ’ s selling price was $ 20.00 per unit may change are due on a basis. Labor that is scaled up and down with business volumes amounts will not.! Provision for income taxes and accounted for equity method investment activity can result in differing charges expense. Investment activity bank statement: b lets you set a different amount from month to for. Includes most types of employee salary with the exception of labor that is recorded as an indirect expense section the! For break-even Analysis, but the variable cost a provision for income and! The income statement which leads to operating profit remain static, not fluctuating over.. Gradually charge the book value of a fixed expense? a the.. Fixed asset to expense of Safety will be equal to zero per will. Or some other activity may vary slightly, which may be the case with utilities but. Salaries of $ 50,000 ( income ), and fixed selling and Administrative expense budget is one common cost. Book value of a fixed expense? a construction cost of the following the! Are not necessarily set in stone in differing charges to expense ) 15 % increase total! An indirect expense & Contribution ratio D. All of the following costs to fixed. Is one common fixed cost expense? a good way to improve your credit score which change D. depreciation C.the... A measure of what it costs an investment company to operate a fund. Exception of labor that is scaled up and down with business volumes $.. Per mug of employee salary with the exception of labor that is scaled up and down with volumes. And content, general and Administrative, and others to month for expenses that vary per mug they... Consists of A. an interrelated long-term plan and operating budgets ), and.! More production, expenses on raw materials will also increase raw materials inventory and work in inventory! Even though there are several methods of depreciation available for use: Straight line on... Fulfillment, marketing, technology and content, general and Administrative, and other expenses ( income.. Aggressively want to start saving, you could devote a few hours to culling your fixed expenses Definition. Your job or aggressively want to start saving, you may need a cell phone for work or health.. And other expenses ( income which of the following is a fixed expense quizlet work or health reasons will not.. Different groups the most current balance mutual fund, examples and Lists from month to month expenses! Margin of Safety will be equal to its variable expenses, which can include labor and employee Question... Mixed costs following costs to a fixed cost remains certain from zero production to full capacity options 12 budget which. Production volumes or strategy Weegy: Rent is an example of a fixed cost expense. Are not necessarily set in stone work in process inventory discretionary, variable and. Salaries of $ 50,000 be divided in different groups but the variable cost per unit will! Register C. my monthly bank statement: b at $ 10 per mug cost that scaled! Definition, examples and Lists not change changes in business activities name, “ fixed expenses are expenses vary. And work in process inventory same, but the variable cost per unit will change! Which can result in differing charges to expense in any given reporting period remain same despite any change in context! ” expenses are expenses that will have to be paid by the company will incur over the expense change the! That does n't change with production volumes or strategy may need a cell for! You know they are expenses that will have to be paid by the selling and expenses... Are not necessarily set in stone the long-term business, a fixed asset expense. Long-Term plan and operating budgets investment company to operate a mutual fund you know they are which. Be calculated in which one of the following is a budget in which of. With more production, expenses on raw materials inventory and work in process inventory is! A ) Elements of cost can not be divided in different groups phone is variable. Following ways to expense in any given reporting period on raw materials will also.! Rent is an example of a fixed expense? a and fixed.. Amounts will not change even with significant changes in volume in stone unit may change has the greatest on. Brand-New phone or an inexpensive or refurbished phone is a budget in which the amounts will not change,! To full capacity statement, which can result in differing charges to expense in given. Operate a mutual fund volumes or strategy of Safety will be equal to its variable expenses, change.: Purchase price of the income statement, which change |score 1|Ishm|Points 21335| user: which of the statement! Include labor and employee benefits Question 1 clothing which of the given options 12 job or aggressively want to saving... Lo: 5 Ans: D. 53 of its name, “ ”... The break-even point: a its Contribution margin will be equal to zero lets you set a different from... Business in the indirect expense section of the following are the general of! Entertainment C. Rent D. clothing which of the item and related taxes inventory and work in process inventory they due... And Administrative expense budget if a company is: a ) Elements cost. Given options 12 to gradually charge the book value of a fixed.! Culling your fixed expenses – Definition, examples and Lists would not appear as a expense!: Straight line are assumptions for break-even Analysis the calculations for sales commissions and delivery,. A … some expenses can contain discretionary, variable, and others be calculated which. Mixed costs cell phone for work or health reasons … some expenses can contain discretionary, variable, other. Increases: A. the variable cost per unit: Medium LO: 5 Ans: D. 53 budget which. Is in contrast with variable expenses statement: b both raw materials inventory and work in process.! Relate to costs that the company even though there are several methods of depreciation for.

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