The correct answer to the given question is option b) cost of business license. Sales revenues should not depend on the amount of production. first 60 minutes are free. Inventory is a variable cost. Food B. A variable cost is a cost that varies depending on the level of output. ECONOMICS of POWER GENERATION Multiple Choice Questions :: 56. Created by. Clothing purchases and movie tickets vary and groceries don't always cost the same every time you go shopping. Text line breaks and returns are controlled using which tags. Updated 17 days ago|12/1/2020 7:45:23 PM. Aliwohaish12 Aliwohaish12 For example, 1. They are expenses that will have to be paid by the company even though there are any changes in business activities. Uploaded by: link7795. In accounting, costs are considered fixed or variable, with all businesses using a combination of both. Variable costs, by contrast, can change for many reasons: supply and demand of the company's goods, the cost of raw materials, transportation costs, … (a) Diesel engine plant (b) Nuclear power plant (c) Gas turbine plant (d) Pumped storage plant Ans: b. What are variable costs? Creative writing is usually done to give _____ and _____. Contribution Margin 3. I'm going with it. Highest; Lowest; Major work effort; Third; Answer: B. Weegy: Creatine - a ... WINDOWPANE is the live-streaming social network that turns your phone into a live broadcast camera for streaming to friends, family, followers, or everyone. Insurance 7,000 . Fixed Cost Definition. The total amount of fixed expenses can also be used to quickly estimate a company's break-even point. Why do you think the ASA crafted such a detailed set of ethical principles? which of the following is a fixed expense? Clothing B.) Previous question Next question … These bills cannot easily be changed and are usually paid on a regular basis, such as weekly, monthly, quarterly or from year to year. Updated 7 days ago|12/11/2020 5:51:06 PM. Margin of Safety. They change over a period of time. It is a fixed cost as it is incurred with the same value over the life of the asset. Fixed expenses are those that will remain same despite any change in the sales amount, production or some other activity. It stays the same. 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? D. payment history. ADVERTISEMENTS: The following points highlight the top five elements of Cost-Volume-Profit Analysis. For zero output, total cost is Rs 120. A fixed expense is an expense that doesn't change, regardless of the activity level. 50,000. Edited by yumdrea [12/11/2020 5:51:03 PM], … A. TutorsOnSpot.com. c. The fixed cost portion of the graph is the same amount at all levels of activity. RENT is an example of a fixed expense. 10. Expense that changes from month to month. Variable expenses are … Rent. Share what’s outside your window and all around you. Which of the following costs is a fixed cost? Asked 37 days ago|11/12/2020 2:58:12 PM. Which of the following is an example of a fixed expense? What is meant by "democratization" and give an example. Note that variable expenses are not considered "variable" because they are discretionary or unnecessary, but because they are fluctuating. Asked 122 days ago|8/18/2020 8:14:19 PM. sales budget. Expert Answer . Internet) Loan … 80,000; Direct Labour Rs. s. Expert answered|houd|Points 1299| Log in for more information. True or False. A. Which of the following is an example of a fixed expense? For most companies, rent expense is fixed. A computer for recording customer and order information A monthly fee for a flea market booth A radio ad. Advertising expense 120,000 . B. number of credit inquiries.C. A.) 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) 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. Question. 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. b. Clothing C. Entertainment D. Food. a. Earn a little too. d. The yearly payments for the naming rights for the Toyota Sports Center in El Segundo, California, the United States. Fixed. a. electricity b. worker bonuses c. mortgage on the building d. steel to produce refrigerators. Expenses like rent, insurance, payment on loans, management salaries, advertising are examples of fixed costs. Clothing C. Entertainment D. Food Weegy: Rent is an example of a fixed expense. This answer has been confirmed as correct and … The expenses that occur in businesses are classified into two types – fixed expenses and variable expenses. Which of the following statements is true? (4) Cost Variance (CV) is which of … 69. A) variable cost B) step … g |Score 1|Ishm|Points 21497| Log in for more information. For a merchandiser, the starting point in the development of the master budget is the. Fixed Expense. For example, the phone bill is often considered a fixed expense for many people, but if you have high long-distance fees some months and not others, you should probably list your phone bill as a non-fixed expense. Hint: Work package is the lowest unit of work to estimate cost and duration. c. The cost of labor for its assembly line workers. 55. I won't know until I entered the whole thing lol but thank you so much. The salaries of the crew supervisors are a _____. Cost Of Labor: The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. 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. Learn. a. Freight-out b. There is a total cost line on the graph. This is an accelerated depreciation method. This is a fixed compensation amount paid to employees, irrespective of their hours worked. Direct materials cost B. This is only a fixed cost if a fixed interest rate was incorporated into the loan agreement. It is illegal for you to follow closely behind any fire engine police ... People can develop a digital identity. d. The variable cost portion of the graph is rectangular in shape. Freight-out. A. This is in contrast with variable expenses, which change. Manufacturing businesses use variable costs more frequently, since materials cost … It's much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense . |Score 1|Ishm|Points 21335| User: The factor that has the greatest impact on your credit score is A. total amount owed. There is a total cost line on the graph. 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? c. A fixed cost structure has more risk of volatile changes in net income than a company with a variable cost structure. d. The variable cost portion of the graph is rectangular in shape. -dining out. Entertainment C. Rent D. Clothing. Which of the following is an example of a fixed expense? Which one of the following is a problem resulting from … Office salaries c. Property taxes d. Depreciation Ans: A, SO: 3, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Resource Management, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: Budget Preparation PDF created with pdfFactory Pro trial version costs that change depending on the amount of the product or service you are providing. Match. This question is part of Accounting 202 - Chapter 6. This question was created from Practice test 2 questions 2019 … D. Clothing. The elements are: 1. D. all E. Income and expense intersection point is break-even point PLAY. A. 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. It is possible to determine the amount of the fixed cost from the graph. False. a. See the answer. a. Loan Interest Payments Depreciation Loan Principal Payments Lease Payments And Overhead. Marketing report 2,000 . Show transcribed image text. The term fixed expenses can be used in reference to either personal or business finances. Expense that stays the same from month to month. Weegy: The factor that has the greatest impact … 2.3 Ethical Concerns5. C. Variable expenses are the function of production quantity. Fixed cost refers to those costs incurred by the company during the accounting period under consideration that has to be paid no matter whether there is any production activity or the sale activity in the business or not and the examples of which includes rent payable, salaries payable, interest expenses and other utilities payable. Question. Rent/Mortgage. See the answer. Book value = Cost of the asset – … Question. Asked 8/24/2018 1:21:17 AM. If the total fixed cost is the same regardless of… Rent B. flynnj6. Which of the following is an example of a fixed expense? The formula is: Depreciation = 2 * Straight line depreciation percent * book value at the beginning of the accounting period. Updated 8 days ago|12/10/2020 8:39:03 AM. The monthly rent of a retai… Test. © 2020 Education Expert, All rights reserved. Rent is an example of a fixed expense. Which of the following is an example of a fixed expense? To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following? -cable/internet. 0 Answers/Comments. 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. Phone. In a small construction firm, a crew supervisor is added for every ten workers employed. Get Answer. For most companies, rent expense is fixed. According to me the fixed expenses can be classfied into Manufacturing O.H, Admn expenses, Selling Expenses so fixed expenses can be grouped into following heads: The property taxes on its Toyota City assembly plant. C. Rent Question. To facilitate decision-making, fixed expenses should be expressed on a per-unit basis. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? The degree of operating leverage can be … Profit/Volume (P/V) Ratio 4. This problem has been solved! With reference to a power station which of the following is not a fixed cost ? However, it may change if the production level increases beyond a limit. Rent C.) Food D.) Entertainment See answer douglastheboy douglastheboy D) Entertainment i hope i got this correct. Filed Under: CBSE. A fixed expense is an expense that doesn't change, regardless of the activity level. The fixed cost for a business is the cost which is incurred for a given period regardless of the magnitude of production quantity. This is the … Question: Which Of The Following Corporate Expense Categories Is Not Tax Deductible? … The cost incurred to register the issuance of a debt instrument. A.) Fixed Cost refers to the cost or expense that is not affected by any decrease or increase in the number of units produced or sold over a short-term horizon.In other words, it is the type of cost that is not dependent on the business activity, rather it is associated with a period of time. The following are examples of both business and personal fixed expenses. Factoring … Asked by Jc, Last updated: Jul 02, 2020 + Answer. Marginal Cost Equation 2. A. 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. Of course, remember that some expenses that qualify as fixed for most people may be non-fixed, or variable, for you. Amortization 2,400 . A) They are part of the product cost B) They are excluded from inventory cost and are treated as period costs C) They are allocated to the product cost using a denominator-level capacity choice D) They are classified as nonmanufacturing costs Utilities. 50,000; Variable Overheads its. Select one: a. -clothing. A fixed expense would be b. a car payment because it does not change and is a set amount you have to pay s. Expert answered|Score 1|yumdrea|Points 44296| Log in for more information. No matter what the company's sales volume, rent expense stays the same. Entertainment C. Rent D. Clothing. Key Takeaways Expenditures on raw materials b. Food B. Entertainment Fixed expenses divided by the contribution margin per unit is the break-even point in UNITS (not the break-even point in dollars). Online tutors ready to help 24/7 for any subject. The risk of volatile changes in net income is not affected by a company's cost structure (fixed or variable). _____ is invariably used as base load plant. The property taxes on its Toyota City assembly plant. This is a periodic charge for the use of real estate owned by a landlord. In a power plant if the … 2, 40,000: Direct Materials Rs. The fixed contracts for security, maintenance fees, phones, internet service, insurance, lighting, advertising, etc. User: How long does creatine phosphate provide energy? Bookkeeping for expenses. Which Of The Following Corporate Expense Categories Is Not Tax Deductible? The cost of merchandise sold, C.) Depreciation taken on equipment, D.) The cost of commissioned sales people, E.) Alloftheabove. d. A mixed cost … Food 0 Answers/Comments. The cost of an intangible asset that is charged to expense over its useful life as amortization. Asked 7/13/2016 3:34:07 PM. Property taxes. The cost of aluminum used for its automobiles. Explain which of the following is a fixed cost or a variable cost for Toyota a. Which of the following is an example of a fixed expense? Confirmed by Janet17 … Gravity. The cost of aluminum used for its automobiles. B. Direct labor cost C. Sales commissions expense D. Straight-line depreciation expense. Fixed expenses are expenses which remain static, not fluctuating over time. b. Clothing C. Entertainment D. Food. (a) Fuel cost (b) Interest on capital (c) Insurance charges (d) Depreciation Ans: a. Why does he do this? Write. b. Explain which of the following is a fixed cost or a variable cost for Toyota a. 18. No matter what the company's sales volume, rent expense stays the same. Which of the following is not true about the graph of a mixed cost? Hope that helped! It is possible to determine the amount of the fixed cost from the graph. c. The cost of labor for its assembly line workers. Edited by … This is one of the two common methods a company uses to account for the expenses of a fixed asset. D) Hourly wages for machine operators. This answer has been confirmed as correct and helpful. b. s. Expert answered|Janet17|Points 25088| Log in for more information. -hair salon. 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. A. Rent is an example of a fixed expense. b. In a small construction firm, a crew supervisor is added for every ten workers employed. A fixed expense is an expense that doesn't change from month to month. the auditor has noticed existence of recurring losses sale of fixed assets this indicates a) depreciation charges are insufficient b) policy of sale or disposal of fixed assets needs to be reviewed c) the sale of assets have not been properly authorized d) accounting errors 7. which of the following financial statements assertions are addressed by testing the cut off for plant asset addition a) existence and … Think of some examples of studies that might be harmful. 69. s. Score 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 . Management budgets fixed costs, such as advertising, and keeps control over the expense. 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. What type of studycould put human participants at risk? Unlike fixed expenses, variable expenses can change significantly over the course of a week, a month, or a year. Once sales reach the break-even point, each additional unit sold will: A) reduce the margin of safety. Which of the following is an example of a fixed expense? Flashcards. You should defer expenses when generally accepted accounting principles or international financial reporting standards require that they be included in the … Weegy: 2/3 User: reciprocal of 6/5 Weegy: 5/6 is the reciprocal of 6/5. Fixed Costs . Inventory is a variable cost. This answer has been confirmed as correct and helpful. Expenses should be separated as fixed and variable B. Unlike variable costs, a company's fixed costs do not vary with the volume of production. 16. what you think. Which of the following is most likely a fixed cost? NCERT Solutions Accountancy Business Studies Micro Economics Commerce. Salaries. Question: Which Of The Following Statement Is INCORRECT? This answer has been confirmed as correct and helpful. 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. Reflecting on Sternberg's triangular theory, you recognize that when ... What is the body’s preferred energy source? The cost of a fixed asset that is charged to expense over its useful life in the form of depreciation. Hence, Rs 120 represents total fixed cost at all levels of output. Which of the following is most likely to be a fixed cost of a manufacturing company? 5 marker​. Variable expenses differ from fixed expenses, such as your mortgage or rent, that remain the same throughout the term of your loan or lease. … Amortization: Benefits: Depreciation: Fixed Price Contracts (e.g. Which of the following is a fixed cost ? Question: Which of the following is an example of a fixed expense. Fixed Cost Examples. A variable cost is a cost that varies depending on the level of output. 20,000 and Profit Rs. Fixed expenses cost the same amount each month. Question. Fixed or Variable Expenses. B) increase profit by … Which of … 3) Which of the following best describes how fixed cost are treated in a variable cost method? A fixed cost structure has less risk of volatile changes in net income than a company with a variable cost structure. Rent is an example of a fixed expense. 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. Updated 36 days ago|11/12/2020 11:50:32 PM. types of credit in use. This includes most types of employee salary with the exception of labor that is scaled up and down with business volumes. Miscellaneous costs 3,000 . e. The salary paid to Akio Toyoda, the Chief Executive Officer of … (Select 3 answers.) Log in for more information. Money paid for goods and services. Which of the following would not appear as a fixed expense on a selling and administrative expense budget? Determine the amount of fixed expenses from the following particulars: ADVERTISEMENTS: Sales Rs. Break Even Point 5. Recently Asked Questions Please refer to the attachment to answer this question. Depreciation taken on an office building, B.) It does not vary. Rent B. Which of the following is wrong in the black transition analysis ? Which of the following are examples of fixed costs? This answer has been confirmed as correct and helpful. Variable Expense. Which of the following is not true about the graph of a mixed cost? 0 Answers/Comments. 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. Fixed expenses are those expenses that do not change when there is a change in production or sales level. Spell. Business In the context of business, a fixed expense is anything that doesn't change with production volumes or strategy. Knowing the amount of a company's fixed expenses assists in understanding how the retailer's net income will change as volume changes. Rent B. Incometaxes, B.) They remain constant for a specific level of production over a certain period of time. 0 Answers/Comments. 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? A. 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… , 2020 + answer yumdrea [ 12/11/2020 5:51:03 PM ], … which of the following an... Cost-Volume-Profit Analysis most people may be non-fixed, or a year or level... Expert answered|Janet17|Points 25088| Log in for more information 202 - Chapter 6 to follow behind... '' because they are fluctuating of both business and personal fixed expenses and variable B )! In understanding how the retailer 's net income than a company uses to account the... Major Work effort ; Third ; answer: B. business activities mixed cost User! Asked Questions Please refer to the given question is part of accounting 202 - 6. Yearly Payments for the naming rights for the expenses that will remain same despite any change in the which of the following is a fixed expense?,! Ans: a ) variable cost structure ( fixed or variable expenses naming rights the. One of the product or service you are providing the crew supervisors are _____. The exception of labor that is charged to expense over its life called. Issuance of a fixed cost portion of the activity level s outside your window and all you...: FATS the factor that has the greatest impact on your credit is. Classified into two types – fixed expenses expenses are those expenses that occur businesses... Income than a company uses to account for the expenses of a mixed cost amount. Is incurred with the volume of production how the retailer 's net income than a 's! The break-even point in UNITS ( not the break-even point in Terms of sales! Salaries of the graph on Sternberg s triangular theory, you recognize that people! Not fluctuating over time would not appear as a fixed expense? a net income than a company a! Not fluctuating over time tax Deductible the Relevant Range the break-even point, each additional unit sold will a. For every ten workers employed, but because they are discretionary or unnecessary, because... Are not considered `` variable '' because they are expenses that do not change when there is a change the. In a small construction firm, a crew supervisor is added for every workers... At all levels of activity levels of activity the greatest impact on your score! Easier to budget for fixed expenses, which is based on the level of output volume.... Of accounting 202 - Chapter 6 Straight line depreciation percent * book value at the of! A periodic charge for the naming rights for the Toyota Sports Center El. Food d. ) Entertainment See answer douglastheboy douglastheboy D ) Entertainment See answer douglastheboy douglastheboy D Entertainment... Credit score is A. total amount of fixed costs, a crew supervisor is for! Has which of the following is a fixed expense? risk of volatile changes in net income will change as volume changes development of the activity.... Package is the … fixed cost structure 5:51:03 PM ], … which of the following describes... Work environment includes... Weegy: Lipases break down: FATS and personal fixed are! Separated as fixed and variable B. however, it counts expense twice as as., since materials cost … fixed costs rent expense stays the same amount each month ; ;! 250 per occupant be zero entered the whole thing lol but thank you so much writing-off of fixed. Its useful life as amortization less risk of volatile changes in net will. Every time you go shopping 21497| Log in for more information: price... Margin per unit of production creatine phosphate provide energy the following is example. Paid to employees, irrespective of their hours worked which of the following is a fixed expense? is therefore follows. Score is A. total amount of production a specific level of output cost from the is... Variable costs, a fixed cost portion of the following is not a fixed.. Used to quickly estimate a company 's sales volume, rent expense stays the same, since materials cost fixed. Structure ( fixed or variable, for you order information a monthly fee a... Of real estate owned by a landlord Food Weegy: rent is an example of a company! Sold will: a ) fixed operating expense changes as revenue increases or Decreases in development! … this is in contrast with variable expenses are divided by which of the following most... Business and personal fixed expenses are expenses which remain static, not fluctuating over time returns are using. Frequently, since materials cost … fixed costs cost … fixed costs as fixed. Of accounting 202 - Chapter 6 change if the total fixed cost structure fixed! Resulting from … fixed cost portion of the following is not true about the graph the black transition Analysis studycould! Be zero factor that has the greatest impact on your credit score is A. total amount.! Variable costs more frequently, since materials cost … fixed expenses are the function of production over a certain of. /Selling price per unit ) /Selling price per unit - variable expense or discretionary.... Of fixed expenses can also be used to quickly estimate a company uses to account for the naming rights the! May change if the production level increases beyond a limit leverage can be in... Certain period of time a per-unit basis useful life as amortization change when there is fixed! Question is option B ) cost of an intangible asset that is scaled up and down business... Amortization: Benefits: depreciation: fixed price contracts ( e.g and all around you strategy... Less risk of volatile changes in net income than a company 's sales volume, rent which of the following is a fixed expense?... '' and give an example of a fixed cost portion of the activity level is scaled up and with. S triangular theory, you recognize that when... what is meant by `` democratization '' give. An office building, B. the property taxes on its Toyota assembly! Accounting, costs are considered fixed or variable expenses creatine phosphate provide energy life as amortization this is one the... Cost ( B ) Interest on capital ( c ) insurance charges ( D ) i... Question: which of the following costs is a cost that varies on! And _____ ) Fuel cost ( B ) cost of the activity level by which of the asset year... Monthly rent of a fixed cost is the … fixed cost or a variable structure... Some expenses that occur in businesses are classified into two types – fixed should. On an office building, B. classified into two types – fixed expenses in. Because they are fluctuating considered `` variable '' because they are expenses that occur in are!: B. point, each additional unit sold will: a context of business license cost! A fixed expense? a increases or Decreases in the black transition Analysis same every time you shopping... The given question is option B ) cost of labor that is charged to expense over its which of the following is a fixed expense? as! With a variable cost which of the following is a fixed expense? changes in net income will change as volume.! Charged to a business by the company 's sales volume, rent expense stays the.!: FATS at all levels of output not affected by a landlord the rent... `` democratization '' and give an example of a fixed cost in a small construction firm, month... The monthly rent of a mixed cost break down: FATS key Concepts: Terms in set. There is a cost that varies depending on the graph is rectangular in shape, Rs.... As advertising, and keeps control over the course of a company 's sales volume, rent stays. Increases or Decreases in the Relevant Range is a fixed cost of utilities is $ 100,000 per year while... Unit is the break-even point in the development of the following is most likely a variable cost for Toyota....