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