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3 years ago

Discuss the difference between fixed expenses and variable expenses as they relate to a budget.

2 answers:

8 0

Fixed expenses are those that dont change with changes in production level or sales volume, variable is the exact opposite.

SSSSS [86.1K]3 years ago

6 0

Fixed expenses are expenses that stay the same for a person or a business. An example of a fixed expense is rent/mortgage. This expense doesn't change if you are only usig the building for 2 weeks or the entire month, its a set rate. A variable expense is an expense that changes like an electric bill, it varies based on the month and usage. When you budget, you can easily budget for your fixed expenses but you need to allow some room in your budget for expenses that change.

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Fischer Company has outstanding 8,000 shares of $100 par value, 5% preferred stock, and 50,000 shares of $1 par value common sto

nikklg [1K]

Answer:

The appropriate solution is "$130,000".

Explanation:

The given values are:

No. of common shares outstanding

= 50,000

Dividend per share

= $1.80

No. of preferred shares outstanding

= 8,000

Dividend per share

= $5

Now,

The total dividend on common shares will be:

= $No. \ of \ common \ shared \ outstanding\times Dividend \ per \ share$

On substituting the values, we get

= $50,000\times 1.80$

= $90,000$ ($)

The total dividend on preferred stock will be:

= $No. \ of \ preferred \ shares \ outstanding\times Divided \ per \ share$

On substituting the values, we get

= $8,000\times 5$

= $40,000$ ($)

Hence,

The total dividend paid by company will be:

= $Total \ dividend \ on \ common \ shares +Total \ dividend \ on \ preferred \ stock$

= $90,000+40,000$

= $130,000$ ($)

Thus the above is the correct answer.

4 0

3 years ago

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a sche

ahrayia [7]

Answer and Explanation:

a. The required balance of allowance for doubtful debts is shown below:

Particulars Account receivable % Estimated uncollectible

Not yet due $860,000 1.20% $10,320

1 to 30 days $344,000 1.95% $6,708

31 to 60 days $68,800 6.45% $4,438

61 to 90 days $34,400 32.50% $11,180

Over 90 days $13,760 67.00% $9,219

Estimated balance $41,865

b. The adjusting entry is

Bad debt expense Dr ($41,865 - $14,000) $27,865

To Allowance for doubtful debts $27,865

(being the bad debt expense is recorded)

For recording this we debited the bad debt expense as it increased the expenses and credited the allowance for doubtful debts as it decreased the assets

8 0

3 years ago

Which of the following transactions or events would have no immediate effect on the times interest earned ratio but will cause d

Gemiola [76]

Answer:

b. issuing new equity

Explanation:

debt to equity ratio = Total debt/ Total equity x 100

and

interest earned ratio = Operating Income ÷ Interest charge

<u>Ways to decrease debt to equity ratio :</u>

1. Increase equity (no effect on interest earned ratio)

2. Decrease debt (increases interest earned ratio)

thus,

issuing new equity have no immediate effect on the times interest earned ratio but will cause debt to equity ratio to decrease.

7 0

3 years ago

Which of the following strategies is most likely to be pursued by a firm when there are strong pressures for cost reductions and

dimaraw [331]

Answer: A)domestic strategy

Explanation: Domestic strategy is a type of marketing strategy that is particularly used for the domestic purpose that is when a company establishes branch for particular company for the marketing . They don't have a focus on global areas rather than considering only the geographical area in their part.

They establishes their marketing strategy according to the factors like cultures,need, traditions, demand, preferences etc.

8 0

4 years ago

A bowling alley charges each person $2 to rent shoes and $3 per game. Which function represents The rate of change of the functi

scZoUnD [109]

Answer:

The function is, y = 2 + 3x

The rate of change of the function is 3.

The y-intercept of the function is 2.

Explanation:

Given,

For each person,

The cost of renting shoes = $ 2,

Additional cost per game = $ 3,

Thus, the total charges for x games, ( say y ) = rent + additional cost for x games

⇒ y = 2 + 3x

Which is the required function,

∵ y = 2 + 3x is a line,

We know that,

The rate of change for a line y = mx + c is m.

Thus, the rate of change of the function is 3.

Now, for y-intercept,

x = 0,

y = 2 + 3(0) = 2

So, y-intercept of the function is 2.

6 0

3 years ago