B. The company also has fixed sales salaries of $50,000. Sales = Contribution margin (Rs.) B. number of credit inquiries.C. If you lose your job or aggressively want to start saving, you could devote a few hours to culling your fixed expenses. Committed fixed costs relate to costs that the company will incur over the long-term. The Benefits of Saving Money on Fixed Expenses . What is a static budget? 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. Inventory c. Carry Expense d. Depreciation Expense Depreciation is one common fixed cost that is recorded as an indirect expense. The following are the general methods of depreciation available for use: Straight line. Non-operating expenses comprise interest expense (and income), and other expenses (income). |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. There are several methods of depreciation, which can result in differing charges to expense in any given reporting period. Finance Software for Variable Expenses . types of credit in use. a. 2) Which of the following is a fixed cost with respect to units produced in a factory? Promotion Expense b. Operating expenses consist of the cost of sales, fulfillment, marketing, technology and content, general and administrative, and others. Fixed expenses are expenses which remain static, not fluctuating over time. Fixed expense are those expenses that will remain same despite any change in the sales amount, production or some other activity. Fixed costs are also allocated in the indirect expense section of the income statement which leads to operating profit. C. variable costs increase in total. Which of the following are assumptions for break-even analysis? a. On the income statement, which of the following would be classified as a variable cost? Which of the following account records would have the most current balance? a. C. Move debt around frequently. Entertainment C. Rent D. Clothing B) Fixed cost remains certain from zero production to full capacity. 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. The following are examples of both business and personal fixed expenses. B. fixed costs in total remain the same. 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. Which of the following would not appear as a fixed expense on the Selling and Administrative Expense Budget? D. Pay your bills on time. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis. 3. Choosing between a brand-new phone or an inexpensive or refurbished phone is a variable expense. B. work in process inventory. C) Behavior of different costs is linear D) Selling per price unit remains constant. Based on budgeted Sales b. + Fixed expenses + Profits b. A. If it produces 10,000 mugs a month, the fixed cost of the lease goes down, to the tune of … A) monthly rent payment for the building B) electricity expenses C) utilities cost of the building D) direct material costs Rent B. D. the fixed costs will remain the same, but the variable cost per unit may change. Mason Company’s selling price was $20.00 per unit. Fixed Expenses – Definition, Examples and Lists. A. Account balance from ATM statement B. A. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. A) Elements of cost cannot be divided in different groups. b. financial budgets and a long-term plan. C.the fixed costs and the variable cost per unit will not change. This is in contrast with variable expenses, which change. b Its margin of safety will be equal to zero. The calculations for sales commissions and delivery expense, followed by the selling expenses budget, are shown in the following … The break-even point for Mason Company is: A) 10,500 units. 52. 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. Expense Ratio: The expense ratio is a measure of what it costs an investment company to operate a mutual fund . Which of the following is the right formula for calculating total mixed cost? 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