Level: Medium LO: 5 Ans: D. 53. Account balance from ATM statement B. My own account register C. My monthly bank statement: B. types of credit in use. Some expenses can contain discretionary, variable, and fixed categories. These costs, such as depreciation expense, property tax expense and insurance expense, cannot be changed during short periods of time and are only They are expenses that will have to be paid by the company even though there are any changes in business activities. 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. A. D) 9,000 units. User: Which of the following is an example of a fixed expense?A. A. For example, you may need a cell phone for work or health reasons. 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. a. Office salaries c. Property taxes d. Depreciation 74. Apply for several credit cards. Outside the relevant range, total fixed costs may change and/or variable costs per unit may change. This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. a. Freight-out b. Don't allow balances to get to zero. A master budget consists of a. an interrelated long-term plan and operating budgets. a) A, B, C b) B, C, D c) A, C, D d) A, B, D View Answer / Hide Answer B) 15% increase in total mixed costs. A. Based on budgeted Sales b. Sales = Contribution margin (Rs.) A. Sales commissions are 4% of sales dollars, and delivery expense, also called freight out by some companies, is $0.10 per unit sold. A static budget is a budget in which the amounts will not change even with significant changes in volume.. Fixed manufacturing overhead totals $36,000 and fixed selling and administration expenses total $40,000. Which of the following are assumptions for break-even analysis? There are several methods of depreciation, which can result in differing charges to expense in any given reporting period. The major lesson here is that in spite of its name, “fixed” expenses are not necessarily set in stone. Entertainment C. Rent D. Clothing 2) Which of the following is a fixed cost with respect to units produced in a factory? Using budget profit c. Using profit & Contribution ratio d. All of the given options 12. 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 + Profits b. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. Depreciation. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis. B. work in process inventory. Rent B. |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. 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. 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. The company also has fixed sales salaries of $50,000. Fixed and Variable Expenses Management budgets fixed costs, such as advertising, and keeps control over the expense. b. Which of the following is not a fixed cost? As such, it may spread the fixed cost of the lease at $10 per mug. Depreciation is used to gradually charge the book value of a fixed asset to expense. More specifically, assign the following costs to a fixed asset: Purchase price of the item and related taxes. A. Finance Software for Variable Expenses . C.the fixed costs and the variable cost per unit will not change. c. Lease charge. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. B. fixed costs in total remain the same. A) monthly rent payment for the building B) electricity expenses C) utilities cost of the building D) direct material costs 1 17. 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. Non-operating expenses comprise interest expense (and income), and other expenses (income). 52. This is in contrast with variable expenses, which change. 6. Construction cost of the item, which can include labor and employee benefits a. Promotion Expense b. Which of the following is a good way to improve your credit score? Which of the following is an example of a fixed expense? C) Behavior of different costs is linear D) Selling per price unit remains constant. The Benefits of Saving Money on Fixed Expenses . C. Move debt around frequently. Which of the following represents a CVP equation? B. number of credit inquiries.C. What is a static budget? The break-even point for Mason Company is: A) 10,500 units. d. Direct materials. They remain constant for a … A fixed prepayment per person to the healthcare provider for an agreed upon array of services is which of the following? The calculations for sales commissions and delivery expense, followed by the selling expenses budget, are shown in the following … Fixed expenses totaled $54,000, variable expenses were $14.00 per unit, and the company reported a profit of $9,000 for the year. Chapter 19: Cost-Volume-Profit Analysis 19.1-11 Which of the following is NOT a fixed cost? On the income statement, which of the following would be classified as a variable cost? d. Fixed costs 11. Definition of Static Budget. C. variable costs increase in total. Fixed expenses divided by the contribution margin per unit is the break-even point in UNITS (not the break-even point in dollars). 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. By continuing to use this site you consent to the use of cookies on your device as … Fixed Expenses – Definition, Examples and Lists. Which of the following would not appear as a fixed expense on the Selling and Administrative Expense Budget? Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be: B. Rent B. Question 1. The following are the general methods of depreciation available for use: Straight line. 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. For example, with more production, expenses on raw materials will also increase. Which of the following is an example of a fixed expense? Expense Ratio: The expense ratio is a measure of what it costs an investment company to operate a mutual fund . If it produces 10,000 mugs a month, the fixed cost of the lease goes down, to the tune of … D. All of these. 1 1 Clothing C. Entertainment D. Food Depreciation is one common fixed cost that is recorded as an indirect expense. Inventory c. Carry Expense d. Depreciation Expense 10. b Its margin of safety will be equal to zero. D. the fixed costs will remain the same, but the variable cost per unit may change. Committed fixed costs relate to costs that the company will incur over the long-term. b. financial budgets and a long-term plan. B) 4,500 units. The following are examples of both business and personal fixed expenses. Percentage of Margin of Safety can be calculated in which one of the following ways? Total mixed cost = (Variable cost per unit x Number of units) + Total fixed cost Food B. Property taxes. Within the relevant range, as the number of units produced increases: A. the variable cost per unit remains the same. A) Elements of cost cannot be divided in different groups. Finally, Amazon has charged a provision for income taxes and accounted for equity method investment activity. D. Pay your bills on time. Choosing between a brand-new phone or an inexpensive or refurbished phone is a variable expense. B) Fixed cost remains certain from zero production to full capacity. Fixed expenses are expenses which remain static, not fluctuating over time. Any expense which is varying with levels of production is a variable expense. The term “fixed expenses” can be used in reference to either personal or business finances. D. payment history. Operating expenses consist of the cost of sales, fulfillment, marketing, technology and content, general and administrative, and others. Mason Company’s selling price was $20.00 per unit. C) 8,500 units. Fixed costs are also allocated in the indirect expense section of the income statement which leads to operating profit. a. 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 account records would have the most current balance? a. Some personal finance software lets you set a different amount from month to month for expenses that vary. If you lose your job or aggressively want to start saving, you could devote a few hours to culling your fixed expenses. 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. If a company is operating at the break-even point: a Its contribution margin will be equal to its variable expenses. D. both raw materials inventory and work in process inventory. Which of the following is the right formula for calculating total mixed cost? 3. C. finished goods inventory. Fixed expense are those expenses that will remain same despite any change in the sales amount, production or some other activity. 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