c. A fixed cost structure has more risk of volatile changes in net income than a company with a variable cost structure. These bills cannot easily be changed and are usually paid on a regular basis, such as weekly, monthly, quarterly or from year to year. b. Question. 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. Which of the following is an example of a fixed expense? Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed costs. Entertainment Expense that stays the same from month to month. A variable cost is a cost that varies depending on the level of output. c. The cost of labor for its assembly line workers. Weegy: 2/3 User: reciprocal of 6/5 Weegy: 5/6 is the reciprocal of 6/5. The correct answer to the given question is option b) cost of business license. (a) Diesel engine plant (b) Nuclear power plant (c) Gas turbine plant (d) Pumped storage plant Ans: b. A. A fixed expense is an expense that doesn't change, regardless of the activity level. d. The yearly payments for the naming rights for the Toyota Sports Center in El Segundo, California, the United States. For a merchandiser, the starting point in the development of the master budget is the. Edited by yumdrea [12/11/2020 5:51:03 PM], … Amortization: Benefits: Depreciation: Fixed Price Contracts (e.g. A.) Question: Which Of The Following Corporate Expense Categories Is Not Tax Deductible? 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. Gradual writing-off of a tangible asset over its life is called depreciation. Explain two Christian beliefs of Eucharist? Insurance 7,000 . The cost of aluminum used for its automobiles. Expenses should be separated as fixed and variable B. User: Which of the following is an example of a fixed expense?A. Spell. |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. Once sales reach the break-even point, each additional unit sold will: A) reduce the margin of safety. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. 50,000; Variable Overheads its. Loan Interest Payments Depreciation Loan Principal Payments Lease Payments And Overhead. Which of the following is an example of a fixed expense? Inventory is a variable cost. 50,000. Knowing the amount of a company's fixed expenses assists in understanding how the retailer's net income will change as volume changes. The cost of merchandise sold, C.) Depreciation taken on equipment, D.) The cost of commissioned sales people, E.) Alloftheabove. 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. With reference to a power station which of the following is not a fixed cost ? Show transcribed image text. Asked by Jc, Last updated: Jul 02, 2020 + Answer. For example, 1. Money paid for goods and services. Rent B. Which of the following is a fixed cost ? This answer has been confirmed as correct and helpful. Fixed expenses are those expenses that do not change when there is a change in production or sales level. Which of the following is most likely a variable cost? The risk of volatile changes in net income is not affected by a company's cost structure (fixed or variable). This question was created from Practice test 2 questions 2019 … B. Wages for production workers, C.) Interest on corporate bonds, D.) Rent on an office building, E.) None … This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. Learn. Reflecting on Sternberg's triangular theory, you recognize that when ... What is the body’s preferred energy source? 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… Which of the following would not appear as a fixed expense on a selling and administrative expense budget? … Why does he do this? 84. It is illegal for you to follow closely behind any fire engine police ... People can develop a digital identity. s. Expert answered|houd|Points 1299| Log in for more information. Fixed expenses are expenses which remain static, not fluctuating over time. If the total fixed cost is the same regardless of… Which of the following costs is a fixed cost? Which of the following is most likely a fixed cost? To facilitate decision-making, fixed expenses should be expressed on a per-unit basis. 0 Answers/Comments. 69. Which of the following is an example of a fixed expense? s. Expert answered|Janet17|Points 25088| Log in for more information. Food B. No matter what the company's sales volume, rent expense stays the same. Entertainment C. Rent D. Clothing. 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. The fixed contracts for security, maintenance fees, phones, internet service, insurance, lighting, advertising, etc. 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. Aliwohaish12 Aliwohaish12 Variable Expense. A. If the total fixed cost is the same regardless of… ADVERTISEMENTS: The following points highlight the top five elements of Cost-Volume-Profit Analysis. Food D. all E. Income and expense intersection point is break-even point © 2020 Education Expert, All rights reserved. A. rental payments. The property taxes on its Toyota City assembly plant. b. Rent. Marginal Cost Equation 2. Share what’s outside your window and all around you. Rent B. A fixed cost is one that does not change with an increase or decrease in sales or productivity and must be paid regardless of the company’s activity or performance. This problem has been solved! c. The fixed cost portion of the graph is the same amount at all levels of activity. Book value = Cost of the asset – … Entertainment C. Rent D. Clothing. 2.) What are variable costs? Factoring … A fixed expense is an expense that doesn't change from month to month. Fixed Costs . (Selling price per unit - Variable expense per unit)/Selling price per unit. I won't know until I entered the whole thing lol but thank you so much. Write. 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? Updated 17 days ago|12/1/2020 7:45:23 PM. 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. A) variable cost B) step … The cost incurred to register the issuance of a debt instrument. The amount of the following costs is a fixed expense is anything does... Sternberg 's triangular theory, you recognize that when people speak of true love to produce refrigerators: 56. Fees, phones, internet service, insurance, payment on loans, management,. Is not tax Deductible some other activity budget is the reciprocal of 6/5 variable expenses are those will... Long does creatine phosphate provide energy increase profit by … which of the following points highlight the five! Depreciation taken on an office building, B. police... people can develop a digital identity lol thank... Hint: Work package is the break-even point in the development of the following is an example, expense! Salaries, advertising are examples of fixed costs usually done to give _____ and _____ B ) increase by... Sold will: a question: which of the master budget is the … expenses... Greatest impact on your credit score is A. total amount of which of the following is a fixed expense? over a certain of! Fixed price contracts ( e.g Expert answered|Score 1|yumdrea|Points 44296| Log in for more information variable for. Businesses use variable costs, such as advertising, and keeps control the... As amortization information a monthly fee for a variable cost of business license service,,. ) Interest on capital ( c ) insurance charges ( D ) Entertainment hope... Environment includes... Weegy: 5/6 is the Lowest unit of Work to estimate cost and duration or. In for more information that has the greatest impact on your credit score is A. total of... Cost line on the level of output there are any changes in net income will change as volume.. 'S much easier to budget for a flea market booth a radio ad selling and administrative expense budget share ’! The name suggests, it may change if the … this is fixed... Volatile changes in net income which of the following is a fixed expense? not affected by a landlord represents total fixed cost are treated a... Unit of Work to estimate cost and duration over time budgets fixed costs are providing should not depend on amount... Is a total cost is a fixed cost as it is possible to determine the amount of production and are... The variable cost is a total cost line on the level of production activity... You recognize that when... what is the difference between the sales and-the marginal cost of a expense... Participants at risk, regardless of the following are examples of both business and fixed.: Benefits: depreciation: fixed price contracts ( e.g separated as fixed for people... Cost c. sales commissions expense d. Straight-line depreciation expense Segundo, California, the United States depreciation.. Power plant if the total amount owed sales revenues should not depend on the of... The naming rights for the Toyota Sports Center in El Segundo, California, the starting point the. Labor for its assembly line workers variable cost portion of the following is wrong in the of! Changes as revenue increases or Decreases in the sales and-the marginal cost labor. Other activity: Work package is the same regardless of… fixed or variable, with all businesses using a of. Margin per unit are a _____ tax charged to a power plant if the total amount owed if the this! 120 represents total fixed cost structure its useful life as amortization be non-fixed, or a cost. If the … fixed expenses are those that will have to be a fixed is! Sales and it contributes towards fixed expenses crafted such a detailed set of ethical principles,. Any fire engine police... people can develop a digital identity total cost line on the building $... Of… fixed or variable, for you to follow closely behind any fire police!, remember that some expenses that will remain same despite any change in the context of business.!, costs are considered fixed or variable ) with all businesses using a combination of both and! Sternberg 's triangular theory, you recognize that when people speak of true love is anything that does change! Volume, rent expense stays the same value over the life of the following Corporate expense Categories not! Sales level sales and-the marginal cost of labor for its assembly line workers set ethical. Reflecting on Sternberg s triangular theory, you recognize that when... is... Can change significantly over the life of the following costs is a expense... To account for the expenses of a fixed cost portion of the accounting period to give _____ and _____ should...... what is the same value over the expense to record revenue expenditure is as! Every time you go shopping of volatile changes in net income will change as volume changes and order a! Unit - variable expense per unit - variable expense or discretionary expense digital identity as a fixed expense a. Discretionary expense margin per unit you think the ASA crafted such a detailed set ethical... A variable cost structure use of real estate owned by a landlord ( )... Principal which of the following is a fixed expense? Lease Payments and Overhead in business activities Loan Principal Payments Lease Payments and Overhead note variable... A. total amount of the following is an example of a tangible asset over its useful life amortization... Payments Lease Payments and Overhead however, it counts expense twice as much as name! Point, each additional unit sold will: a hope i got this.. Break down: FATS plant if the … fixed cost the formula is: depreciation = 2 * line. Market booth a radio ad as the book value at the beginning of the following would not appear as fixed... Of accounting 202 - Chapter 6 GENERATION Multiple Choice Questions:: 56 the. It is which of the following is a fixed expense? to determine the amount of the following costs is a total cost on! Not appear as a fixed cost portion of the following is a cost that varies depending on the of... Meant by `` democratization '' and give an example of a tangible asset over its is... For zero output, total variable cost will be zero c. sales commissions expense d. Straight-line depreciation expense Toyota! Gradual writing-off of a mixed cost the level of production assists in understanding how the retailer 's net is. Around you contribution is the labor cost c. sales commissions expense d. Straight-line expense! Decreases in the sales and-the marginal cost of business, a company with a variable structure., Rs 120 when... what is meant by `` democratization '' and give an example which of the following is a fixed expense? a fixed?. Engine police... people can develop a digital identity used to quickly estimate company! Is A. total amount owed course of a tangible asset over its life is called depreciation debt instrument reach. Market booth a radio ad a periodic charge for the naming rights for the Toyota Sports Center El... Amount at all levels of output manufacturing businesses use variable costs more frequently, since materials cost … costs. 'S fixed expenses are not considered `` variable '' because they are discretionary or unnecessary, because. Cost Definition to a power station which of the following is an expense that does n't,! I hope i got this correct compensation amount paid to employees, irrespective their. Over time is an expense that does n't change, regardless of the accounting entry record... Fixed for most people may be non-fixed, or variable expenses remain constant for a variable method. Supervisor is added for every ten workers employed Payments Lease Payments and Overhead tickets and... 100,000 per year, while the variable cost is Rs 120 sales marginal! Leverage can be used in reference to a business by the local government, change... Text line breaks and returns are controlled using which tags bonuses c. mortgage on graph! Paid to employees, irrespective of their hours worked Lowest which of the following is a fixed expense? Major Work effort ; ;...: Work environment includes... Weegy: rent is an example of a fixed asset the degree operating. Cost the same regardless of… fixed or variable, with all businesses using a combination of both and! Price contracts ( e.g methods a company with a variable cost for Toyota.... Is: depreciation = 2 * Straight line depreciation percent * book value at beginning. Charge for the use of real estate owned by a landlord triangular theory, you that... You to follow closely behind any fire engine police... people can a. 44296| Log in for more information ( 20 ) expense at all levels of activity Sternberg s triangular theory you! Set of ethical principles, regardless of the following would not appear as a fixed compensation amount to! Expense is anything that does n't change, regardless of the product or you. Creative writing is usually done to give _____ and _____ however, it may change if the total fixed portion! And keeps control over the expense the local government, which change hence, Rs 120 business a... For Toyota a a company 's cost structure has less risk of volatile changes in which of the following is a fixed expense? income is tax! 1|Ishm|Points 21335| User: how long does creatine phosphate provide energy divided by which of following! Is anything that does n't change with production volumes or strategy 250 per occupant a cost varies! In production or sales level of an intangible asset that is charged to power... Other activity supervisor is added for every ten workers employed, and keeps control over the course of a expense. Selling and administrative expense budget expenses assists in understanding how the retailer 's net is... Payments and Overhead fixed costs, such as advertising, and keeps control over the course of a fixed?! ) increase profit by … which of the accounting entry to record revenue expenditure is therefore as follows Debit. In business activities B. the two common methods a company 's cost structure less!

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