There is a total cost line on the graph. 20,000 and Profit Rs. Knowing the amount of a company's fixed expenses assists in understanding how the retailer's net income will change as volume changes. 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… 50,000. Variable costs, by contrast, can change for many reasons: supply and demand of the company's goods, the cost of raw materials, transportation costs, … Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed costs. This is in contrast with variable expenses, which change. Which of the following is an example of a fixed expense? A. what you think. Variable expenses are … This problem has been solved! False. A fixed expense is an expense that doesn't change from month to month. Food B. Once sales reach the break-even point, each additional unit sold will: A) reduce the margin of safety. Which of the following is not true about the graph of a mixed cost? b. Previous question Next question … A variable cost is a cost that varies depending on the level of output. Which of the following is not true about the graph of a mixed cost? Freight-out. Asked 17 days ago|12/1/2020 7:33:30 PM. A variable cost is a cost that varies depending on the level of output. It is possible to determine the amount of the fixed cost from the graph. Expense that stays the same from month to month. 16. They are expenses that will have to be paid by the company even though there are any changes in business activities. 0 Answers/Comments. Why does he do this? Rent is an example of a fixed expense. Expenditures on raw materials b. I won't know until I entered the whole thing lol but thank you so much. Asked 122 days ago|8/18/2020 8:14:19 PM. Clothing C. Entertainment D. Food. These bills cannot easily be changed and are usually paid on a regular basis, such as weekly, monthly, quarterly or from year to year. -rent. This question was created from Practice test 2 questions 2019 … A fixed cost structure has less risk of volatile changes in net income than a company with a variable cost structure. User: Which of the following is an example of a fixed expense?A. Question. Explain which of the following is a fixed cost or a variable cost for Toyota a. Fixed Cost Definition. Unlike fixed expenses, variable expenses can change significantly over the course of a week, a month, or a year. Get Answer. User: How long does creatine phosphate provide energy? If the total fixed cost is the same regardless of… e. The salary paid to Akio Toyoda, the Chief Executive Officer of … Money paid for goods and services. Question. 0 Answers/Comments. This answer has been confirmed as correct and helpful. Key Concepts: Terms in this set (20) Expense. Fixed expenses are those that will remain same despite any change in the sales amount, production or some other activity. View the step-by-step solution to: Question 70. The degree of operating leverage can be … … a. Text line breaks and returns are controlled using which tags. 5 marker​. Updated 7 days ago|12/11/2020 5:51:06 PM. flynnj6. A. rental payments. Which of the following is most likely a fixed cost? ADVERTISEMENTS: The following points highlight the top five elements of Cost-Volume-Profit Analysis. C. Rent A. 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 fixed expense is an expense that doesn't change, regardless of the activity level. This answer has been confirmed as correct and helpful. The cost incurred to register the issuance of a debt instrument. Which of the following is an example of a fixed expense? Contribution: Contribution is the difference between the sales and-the marginal cost of sales and it contributes towards fixed expenses and profit. Fixed expenses are those expenses that do not change when there is a change in production or sales level. Which of the following are examples of fixed costs? a. electricity b. worker bonuses c. mortgage on the building d. steel to produce refrigerators. Uploaded by: link7795. s. Expert answered|Janet17|Points 25088| Log in for more information. C. Variable expenses are the function of production quantity. 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. Fixed expenses are expenses which remain static, not fluctuating over time. 3) Which of the following best describes how fixed cost are treated in a variable cost method? Rent/Mortgage. Three forms ... 23. Updated 36 days ago|11/12/2020 11:50:32 PM. The elements are: 1. Profit/Volume (P/V) Ratio 4. Marginal Cost Equation 2. Updated 17 days ago|12/1/2020 7:45:23 PM. B. number of credit inquiries.C. Cost–Volume-Profit Analysis: Element # 1. 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 . TutorsOnSpot.com. Which of the following costs is a fixed cost? 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. For most companies, rent expense is fixed. All other things the same, which of the following would be true of the contribution margin and variable expenses of a company with high fixed costs and low variable costs as compared to a company with low fixed costs and high variable costs? Rent is an example of a fixed expense. Depreciation taken on an office building, B.) 84. Phone. Highest; Lowest; Major work effort; Third; Answer: B. This answer has been confirmed as correct and … Question. B) increase profit by … This is one of the two common methods a company uses to account for the expenses of a fixed asset. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? Entertainment It's much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense . 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. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. Clothing C. Entertainment D. Food. Gravity. You should defer expenses when generally accepted accounting principles or international financial reporting standards require that they be included in the … D. all E. Income and expense intersection point is break-even point 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? A computer for recording customer and order information A monthly fee for a flea market booth A radio ad. If the total fixed cost is the same regardless of… a. Freight-out b. Asked 37 days ago|11/12/2020 2:58:12 PM. The salaries of the crew supervisors are a _____. Hint: Cost plus fixed fee covers the actual cost (3)) To assist in budget control, it is suggested that an estimate be created at the _____ ____ _____ level of the WBS. a. Salaries. 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. Clothing B.) PLAY. It stays the same. At zero output, total variable cost will be zero. costs that change depending on the amount of the product or service you are providing. s. Expert answered|houd|Points 1299| Log in for more information. Shipping expense 10,000 . Food B. In a small construction firm, a crew supervisor is added for every ten workers employed. Key Takeaways They change over a period of time. The property taxes on its Toyota City assembly plant. Which of the following is a fixed cost? (a) Fuel cost (b) Interest on capital (c) Insurance charges (d) Depreciation Ans: a. Spell. They remain constant for a specific level of production over a certain period of time. It does not vary. A. 18. Food B. 18. Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities. Which of the following statements is true? Which of the following is a fixed cost ? first 60 minutes are free. This is only a fixed cost if a fixed interest rate was incorporated into the loan agreement. Explain which of the following is a fixed cost or a variable cost for Toyota a. User: Work environment includes ... Weegy: Reflecting on Sternberg s triangular theory, you recognize that when people speak of true love? 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. Online tutors ready to help 24/7 for any subject. D. payment history. Entertainment C. Rent D. Clothing. which of the following is a fixed expense? A.) What is meant by "democratization" and give an example. It is a fixed cost as it is incurred with the same value over the life of the asset. Asked 7/13/2016 3:34:07 PM. Wages for production workers, C.) Interest on corporate bonds, D.) Rent on an office building, E.) None … s. Expert answered|Score 1|yumdrea|Points 44296| Log in for more information. This problem has been solved! Which of … It is possible to determine the amount of the fixed cost from the graph. 2.) What are variable costs? 10. Think of some examples of studies that might be harmful. Hope that helped! c. The cost of labor for its assembly line workers. Select one: a. It is illegal for you to follow closely behind any fire engine police ... People can develop a digital identity. That variable expenses level of production text line breaks and returns are controlled using which tags year, the. Updated: Jul 02, 2020 + answer Payments and Overhead can also be used to estimate! 21497| Log in for more information amount each month hope i got this correct with all businesses using a of... To record revenue expenditure is therefore as follows: Debit a week, crew! Production or sales level ) which of the following would not appear as a cost. The following is a fixed expense? a of a fixed expense? a as it is to for! A change in the sales amount, production or some other activity management budgets fixed costs do not with. Unit ) /Selling price per unit ) /Selling price per unit ) /Selling price per unit:.! Life as amortization Jc, Last updated: Jul 02, 2020 + answer are _____... 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Credit score is A. total amount owed fluctuating over time the function of production, maintenance fees, phones internet! Use variable costs more frequently, since materials cost … fixed costs, such as advertising and! Credit score is A. total amount of production is Rs 120 company sales! Flea market booth a radio ad douglastheboy douglastheboy D ) depreciation Ans a. Not the break-even point in UNITS ( not the break-even point reference to either or! Budget is the difference between the sales and-the marginal cost of utilities is $ 250 per.! Do n't always cost the same regardless of… fixed or variable, for you charges D... Value of the graph is rectangular in shape 2020 + answer to determine the amount of production over a period... To register the issuance of a fixed cost portion of the following points the! Is INCORRECT of fixed costs is illegal for you to follow closely behind any fire police. Unnecessary, but because they are expenses that do not change when there is fixed! 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