- What are the 3 types of expenses?
- What are non variable expenses?
- Is a cell phone bill a fixed or variable expense?
- Is food a variable expense?
- Which two expenses are considered variable nondiscretionary expenses?
- What are two variable expenses examples?
- Is rent a fixed or variable expense?
- Is a rent expense an asset?
- Which of the following is an example of variable expense?
- What are variables expenses?
- Is clothing a variable expense?
- What type of expense is rent?
- What are the 4 types of expenses?
- What is a fixed and variable expense?
- What are examples of a fixed expense?
What are the 3 types of expenses?
There are three major types of expenses we all pay: fixed, variable, and periodic.
Do you know the difference?.
What are non variable expenses?
Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. They include such expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.
Is a cell phone bill a fixed or variable expense?
Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also fixed payments, along with your monthly electric and water bills.
Is food a variable expense?
A variable expense is one that fluctuates each month. Some examples of variable expenses you may have can include: Utility bills such as electric, gas and water. Food expenses.
Which two expenses are considered variable nondiscretionary expenses?
Nondiscretionary expenses are things you must pay for or buy, including the following:Food.Rent or mortgage.Car payments.Utilities.
What are two variable expenses examples?
Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs.
Is rent a fixed or variable expense?
Variable costs may include labor, commissions, and raw materials. Fixed costs remain the same regardless of production output. Fixed costs may include lease and rental payments, insurance, and interest payments.
Is a rent expense an asset?
Under the accrual basis of accounting, if rent is paid in advance (which is frequently the case), it is initially recorded as an asset in the prepaid expenses account, and is then recognized as an expense in the period in which the business occupies the space.
Which of the following is an example of variable expense?
Examples of variable costs Credit card and bank fees. Hourly wages and direct labor. Shipping costs. Raw materials.
What are variables expenses?
Variable expenses are costs that change over time. … Fixed expenses such as car payments generally stay the same, but variable expenses change over time.
Is clothing a variable expense?
Examples of Household Variable Expenses Typical household variable expenses might include: … General expenses such as clothing, groceries, and car maintenance. Resource expenses such as fuel, electricity, gas, and water. Other expenses such as entertainment or dining out.
What type of expense is rent?
Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense. Rental expenses are often subject to a one- or two-year contract between the lessor and lessee, with options to renew.
What are the 4 types of expenses?
Terms in this set (4)Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)Intermittent expenses. … Discretionary (non-essential) expenses.
What is a fixed and variable expense?
Fixed cost includes expenses that remain constant for a period of time irrespective of the level of outputs, like rent, salaries, and loan payments, while variable costs are expenses that change directly and proportionally to the changes in business activity level or volume, like direct labor, taxes, and operational …
What are examples of a fixed expense?
Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.