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