What are 3 fixed expenses examples?
Examples of fixed expenses include:
- Rent or mortgage payments.
- Car payments.
- Other loan payments.
- Insurance premiums.
- Property taxes.
- Phone and utility bills.
- Child care costs.
- Tuition fees.
What is variable cost example?
Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. Variable costs are usually viewed as short-term costs as they can be adjusted quickly.
Is electricity bill a fixed cost?
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. Some utilities, such as electricity, may increase when production goes up. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.
What are examples of fixed?
What Is the Difference Between Fixed Cost and Variable Cost?
| Fixed Costs | |
|---|---|
| Nature | Fixed costs are time-related i.e. they remain constant for a period of time. |
| Examples | Depreciation, interest paid on capital, rent, salary, property taxes, insurance premium, etc. |
What are fixed and variable expenses?
Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or basically anything you buy from a store).
What is fixed variable cost?
Variable cost. Definition. Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm. Variable cost is referred to as the type of cost that will show variations as per the changes in the levels of production.
What are 5 examples of variable expenses?
Examples of variable costs
- Production Supplies. Production supplies, such as machinery oil, are consumed based on the amount of machinery usage, so these costs vary with production volume.
- Billable Staff Wages.
- Commissions.
- Credit Card Fees.
- Freight Out.
Is utilities a fixed or variable cost?
Is utilities a fixed cost or variable cost?
fixed costs
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. Some utilities, such as electricity, may increase when production goes up. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.
Is salaries fixed or variable cost?
fixed cost
If a company bills out the time of its employees, and those employees are only paid if they work billable hours, then this is a variable cost. However, if they are paid salaries (where they are paid no matter how many hours they work), then this is a fixed cost.