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brilliants [131]
3 years ago
3

An expense that is constant each month is called a ______ expense.

Business
2 answers:
hjlf3 years ago
7 0

It would be fixed because fixed expenses don't change!

jeka57 [31]3 years ago
6 0

<u>An expense that is constant each month is called a fixed expense. </u>

<u> </u>

Further Explanation:

Expenses:

The expenses refer to the outflow of the funds from the business. The business has to spend funds for the creation or purchase of the goods or services in order to process them and sell them to earn the profit. The expenses are operating in nature and generally incurred on a regular basis. Majorly expenses are divided into two categories: 1) Fixed expenses, 2) Variable expenses.

Expenses with a constant rate in each month:

The expenses that remain unchanged in every month are known as the fixed cost. The fixed cost is the operating cost that does not change with the change in the output of the business. It remains the same for all levels of output. The rent and electricity bill is an example of a fixed cost. The rent of a building remains the same for every month provided that there is no change in the rent agreement. The rent is not affected by the change in the production of the goods. It will be the same at the lowest level of production or the highest level of production.

Thus, an expense that is constant each month is called a fixed expense.

Learn More:

1. Learn more about the cost of visiting the college  

<u>brainly.com/question/1372894 </u>

2. Learn more about the return on investment  

<u>brainly.com/question/2396327 </u>

3. Learn more about the output and price

<u>brainly.com/question/5893964 </u>

Answer Details:

Grade: Senior school

Chapter: Types of Cost

Subject: Cost accounting

Keywords: expense, constant, each, month, called, expense, fixed, no change, the outflow of funds.

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