All categories

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.

You might be interested in

Kingery Corporation began the calendar (and ﬁscal) year with a simple structure consisting of 38,000 shares of common stock outs

Lunna [17]

Answer:

a. EPS = $4.78 per share

b. Basic EPS = $4.41 per share

Explanation:

a. Compute the earnings per share (EPS) of common stock

Number of shares outstanding = 38,000 + 10,000 + 1,000 = 49,000

EPS = Net income ÷ Number of common shares outstanding = $234,000 ÷ 49,000 = $4.78 per share

b. Compute the basic earnings per share of common stock

Preferred dividend = 6,000 × $50 × 6% = $18,000

Basic EPS = (Net income - Preferred dividend) ÷ Number of common shares outstanding = ($234,000 - $18,000) ÷ 49,000 = $4.41 per share

6 0

4 years ago

Why do many economists believe that the best time to start a new business is toward the end of a recession?

Serga [27]

A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.

3 0

3 years ago

your _______ should furnish enough money to live on, in an emergency, for six months. a. interest b. investments c. ira d. savin

mezya [45]

D) savings - you should always have a 'buffer' to ensure that should the worst happen you have 'thinking time' to adapt your lifestyle.

6 0

4 years ago

If an individual's labor supply curve is downward sloping, this indicates that:

Vika [28.1K]

Answer:

A. the income effect dominates the substitution effect

Explanation:

7 0

3 years ago

Assume the company recorded no write-offs or recoveries during 2015. What was the amount of bad debt expense reported in 2015

OLEGan [10]

Answer: $14,500

Explanation:

I could not find the same question as some details are missing but I did find a similar one that you can reference from. Find it attached.

As the company recorded no write-offs or recoveries during the year, the bad debt expense will be the difference in the allowances made for bad debts over the 2 years.

Bad Debt expense = Allowance balance in 2016 - Allowance balance in 2015

= 80,000 - 65,500

= $14,500

6 0

3 years ago