Expert answered|Score 1|Wallet.ro|Points 135556| User: A benefit of using good human relations is that you'll A. have an easy time getting a better job.B. When you sit down to make your monthly budget, you don't have to guess. fix expense in blank in a few steps Visit the DocHub site, locate the Create free account button, and click it. or materials)+ Cost added during the period (con or materials)/ Equivalent units of production c. Based on your answers to parts (a) and (b), comment on Harlen's method of forecasting. A marginal cost is the same as an incremental cost because it increases incrementally in order to produce one more product. For instance, you may put $100 into your emergency fund every payday. Do you buy conventional or organic produce? There are a few strategies businesses can use to reduce their fixed costs. The best way to manage your money is by coming up with a monthly budget. Your utility bills may also be variable expenses because they may change from month to month. The gradual writing-off of a tangible asset over its life is called depreciationDepreciationDepreciation is a systematic allocation method used to account for the costs of any physical or tangible asset throughout its useful life. }\hspace{5pt}& The more fixed costs a company has, the more revenue a company needs to generate to be able to break even, which means it needs to work harder to produce and sell its products. To demonstrate, let's use the same example from above. -reports to those outside the organization, such as owners, creditors, tax collectors, tax authorities and regulators. \text{Patents}\hspace{5pt} & Clothing C. Food D. Entertainment Weegy: Rent is an example of a fixed expense. Insurance proceeds on the building were $32,000\$ 32,000$32,000. So its typically easier to find opportunities to save money. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. \text{\underline{\hspace{15pt}{33,500}}}&\text{\underline{\hspace{15pt}{13,000}}}\\ executive travel expenses. Despite being important, fixed expenses can also be a burden for businesses. A business will certainly take some time to establish and get customers. C. Food Suppose ABC Company produces ceramic mugs for a cost of $2 per mug. But could you stretch a haircut to last six weeks? profit=100 x 0 -35,000 \text{{\hspace{20pt}{5,000}}}&\text{{\hspace{20pt}{6,250}}}\\ All investing involves risk, including loss of principal. In addition, monitor your fixed expenses. This is a periodic charge for the use of real estate owned by a landlord. Irrespective of hours worked, salaries are the fixed compensation paid to the companys employees. Typically, these expenses cant be easily changed. Performance information may have changed since the time of publication. Utility bills, food costs, and medical bills are examples of variable costs. A fixed expense type is an expenditure that does not vary in amount from month to month. Nov. 15 Purchased 10,000 shares of Lane, Inc.'s common stock at $17 per share plus a brokerage commission of$1,200. A variable cost is an expense that changes in proportion to production or sales volume. Variable expenses, on the other hand, are hard to know before you incur them. =35,000, CM Ratio= Contribution Margin/Sales X= the estimated allocation base It is a hybrid security since it combines debt and equity features and provides additional benefits to the holder. Some fixed expenses may be easier than others to trim down. Dingel Corporation has contracted with you to prepare a statement of cash flows. Which of the is not an example of a fixed expense? The amount of fixed costs a business has can vary depending on the industry and the size of the company. -to find the cost of ending work in process inventory= Cost per equivalent units x ending work in process inventory (units x percent of materials or conversion) The best part? Again, the advantage here is that planning out your budget may be easier to do with recurring bill payments. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials. \text{Notes payable, short-term (non-trading)}\hspace{5pt} & You can then set aside that amount each month for each variable expense. Budgeting for variable expenses can be more challenging, as you may not be able to pinpoint exactly how much theyll add up to from one month to another. Prepare a statement of cash flows using the indirect method. For example, a software development company has a fixed cost requirement of $500,000 per month and essentially no cost per unit sold, so revenues of $400,000 per month will generate a loss of $100,000, but revenues of $600,000 will generate a profit of $100,000. You can learn more about the standards we follow in producing accurate, unbiased content in our. Equity investments (non-trading) were sold at $1,700\$ 1,700$1,700 above their cost. b. Fixed costs can take many other forms. One way to do this? If this isn't possible, management may consider analyzing the process to spot opportunities for efficiencies and improvement, which can bring down certain variable costs like utilities and labor. Variable Costs vs. Intangible Assets are the identifiable assets which do not have a physical existence, i.e., you can't touch them, like goodwill, patents, copyrights, & franchise etc. I've written for Life + Money by Citi, Bankrate and The Balance, among others. The most common examples of fixed costs include lease and rent payments, property tax, certain salaries, insurance, depreciation, and interest payments. Its value indicates how much of an assets worth has been utilized. Companies use marginal analysis as to help them maximize their potential profits. -is the potential benefit that is given up when one alternative is selected over another. y=fixed + variablex, Blood Vessels & Major blood vessels of the he, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Daniel F Viele, David H Marshall, Wayne W McManus. A fixed expense means one that doesn't change it's a set amount you pay on a recurring basis. Its value indicates how much of an assets worth has been utilized. We often think of fixed expenses as necessary and variable expenses as unnecessary, but clearly food is a necessary expense! Fixed Cost refers to the cost or expense that is not affected by any decrease or increase in the number of units produced or sold over a short-term horizon. Interest ExpenseInterest ExpenseInterest expense is the amount of interest payable on any borrowings, such as loans, bonds, or other lines of credit, and the costs associated with it are shown on the income statement as interest expense.read more against any borrowings like bonds, loans, convertible debtConvertible DebtConvertible debt is a type of debt instrument that can be converted at the company's discretion into equity shares. -or profit can equal This can be a major problem for businesses that are struggling to stay afloat. Living your budget may mean rethinking wants versus needs to avoid overspending. \text{Investments}\hspace{5pt}& Fixed expenses: This type of expense is part of the foundational business operation that remains the same regardless of the success of the company. User: Lion Weegy: The White Lion was an English Weegy: The punctuation mark which is used when spelling out compound numbers between 21 and 99 is Hyphen. Raw materials 100Dr To show the usage of raw materials by the work in progress accounts Thats because its harder to change your decision when it becomes part of your lifestyle. Take that amount and compare to the actual overhead costs to see if overhead was under or over applied. Fixed expenses are important for businesses to track, as they can have a major impact on profitability. D. attempt to engage the audience. Other factors that can affect whether rent is a fixed expense include the length of your lease, the amount of rent you pay, and whether your landlord allows you to sublet. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. C. Saving work infrequently Similarly, if the company produces 1,000 units, the cost will rise to $2,000. This is the gradual charging to expense of the cost of an intangible asset (such as a purchased patent) over the useful life of the asset. An amortization expense of $10,000 will be incurred as a fixed book cost. \text{2,000}&\text{4,500}\\ how many months does it usually take for your budget to start working as a budget should three why is budgeting so important it gives you control of your money and sets you up for financial success in the future t or f online budgeting apps are more effective than budgeting with pen and paper false Read our. Variable costs are any costs that a company incurs that are associated with the number of goods or services it produces. A fixed expense is a bill that must be paid on a regular basis and the cost of which doesnt vary too much. Variable costs change based on the amount of output produced. mixed costs -contains both fixed and variable cost elements -Y=A+Bx Y=the total mixed cost A= the total fixed costs B=the variable cost per unit activity X= the level of activity ex. \hspace{175pt}\textbf{December 31}\\ Work in process 100Dr \text { Week } & \begin{array}{c} Jan. 20 Sold all 10,000 shares of the Lane common stock for $150,000. Depreciation enables companies to generate revenue from their assets while only charging a fraction of the cost of the asset in use each year. Semi-variable costs are also called semi-fixed or mixed costs. But the advantage of doing so is that you end up with a balanced budget without the risk of racking up high-interest debt. Anything that isnt a fixed expense is considered a variable expensethat means the amount changes from month to month. profit= Unit Cm X quantity - fixed expense CFA And Chartered Financial Analyst Are Registered Trademarks Owned By CFA Institute. Editorial Note: We earn a commission from partner links on Forbes Advisor. For instance, if you get sick, then a doctor visit may be a necessity that you need to cover. That way, while you work on curbing your spending habits, youll have an accurate picture of where youre spending too much and how much you need to save. Plus, it might not feel like a sacrifice, while cutting back on your fun spending probably would. A. That can make using certain budgeting methods, such as zero-based budgeting or the 50/20/30 budget, easier. Since fixed expenses dont change, its easier to budget for these items. This technique was used to forecast eight weeks for this year, which are shown as follows, along with the actual demand that occurred. How To Fix Dns Server Isn T Responding Windows 10, How To Fix Stop Payment Indicator Unemployment, on Which Is An Example Of A Fixed Expense. Examples of fixed costs include: Amortization costs: This expense allocates the cost of an intangible asset, such as patents and trademarks, over fixed periods and reports the expense on the income statement. B. try to outdo your friends. is a cost that can be eliminated by choosing one alternative over another. \text{Accounts payable Other examples of fixed expenses include insurance premiums, utility bills, and most loan payments. All selling and administrative expenses are treated as period costs. Predetermined Overhead Rate, -Job order costing def-is used in situations where many different products are produced each period. Variable expenses may be harder to shrink than fixed expenses because they can affect your lifestyle. Heads on the first coin and heads on the second coin. AmortizationAmortizationAmortization of Intangible Assets refers to the method by which the cost of the company's various intangible assets (such as trademarks, goodwill, and patents) is expensed over a specific time period. Depreciation. These types of expenses are composed of both fixed and variable components. On the other hand, companies, where physical assets are required at large, will have high fixed assets, such as airlines, auto manufacturers, etc. electric bill best financial choce making a decision that will help you financially financial emergency an unplanned expense that arises savings money set aside for future expenses b fixed expense expense that is the same from month to month fixed variable expense cost that you must pay each month but the amount can differ i.e. You could also consider refinancing student loans or consolidating debts with a low-interest rate personal loan to save money. Despite the challenges, fixed expenses are an important part of business. For example if direct labor hours is used as allocation base to get the product costs but manufacturing overhead has little to do with direct labor then products with direct labor will be over costed . ex. Absorption Costing vs. This would be a fixed expense since the amount doesnt change. There are a number of ways that a business can reduce its variable costs. Your monthly mortgage payment, insurance premiums, and childcare costs are examples of fixed expenses. You may have to choose between making dinner and getting take-out. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. -then calculate the cost per equivalent unit = Cost of beginning WIP inventory (con. For instance, your utility payments change depending on your usage, so these bills are considered variable expenses. Fixed expenses are any budget items where the amount doesnt vary much. They are known as fixed because their cost does not fluctuate with sales volume. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. -Job Sheet shows the direct material and labor costs. -Period=Selling expense+administrative expense Payroll is the cost of compensating employees for their work. Developing a new production process can help cut down on variable costs, which may include adopting new or improved technological processes or machinery. 4 & 140 & 160 \\ Avoiding use of disk cleanup tools As I am out 800 dollars no matter what. There are no guarantees that working with an adviser will yield positive returns. Since these expenses are more or less constant, budgeting becomes more predictable. Fixed expenses can occur weekly, monthly, quarterly, or annually. Profit=(sales-variable expense)- Fixed expense Fixed cost refers to those costs incurred by the company during the accounting period under consideration that has to be paid no matter whether there is any production activity or the sale activity in the business or not and the, examples of which include rent payable, salaries payable, interest expenses and other utilities payable. December31, 20202019Buildings-0-29,750Equipment45,00020,000Patents5,0006,250Investments-0-3,000Inventory12,0009,000AccountsReceivable12,25010,000Cash33,50013,000$107,750$91,000Sharecapital-ordinary$43,000$33,000Retainedearnings20,7506,000Allowancefordoubtfulaccounts3,0004,500Accumulateddepreciation-equipment2,0004,500Accumulateddepreciation-building-0-6,000Accountspayable5,0003,000Dividendspayable-0-5,000Long-termnotespayable31,00025,000Notespayable,short-term(non-trading)3,0004,000$107,750$91,000\begin{array} {lrrrrr} Here are several examples of fixed costs: Amortization. Rent B. Marginal costs can include variable costs because they are part of the production process and expense. How To Collect and Classify Your Expenses for Better Budgeting, How To Get Control of Your Finances in 7 Days, Fixed and Variable Expenses in Business Budgets, How To Prepare a Selling and Administrative Expense Budget, How To Calculate the Contribution Margin Ratio, 6 Steps to Creating a Monthly Household Budget, Examples include rent, insurance premiums, or memberships, Examples include utilities, food costs, and entertainment, Tend to account for a larger percentage of your budget. This cost has a variable element, but is largely fixed. 1. This budgeting plan allots 50% of your after-tax income toward needs, 30% toward wants, and 20% toward savings. On the other hand, a variable expense changes with the level of business activity. Taking advantage of a 0% introductory balance transfer offer, for instance, could help you save money on credit card interest. This time frame is typically the expected life of the asset.read more is used to lower the cost value of intangible assetsIntangible AssetsIntangible Assets are the identifiable assets which do not have a physical existence, i.e., you can't touch them, like goodwill, patents, copyrights, & franchise etc. Businesses incur two main types of costs when they produce their goodsvariable and fixed costs. At the initial stage of business, it should be kept lower as the businesss income will be below. They may include paying rent and taxes. When you lower your fixed expenses, you automatically save more money each month or pay period. Fixed costs may include lease and rental payments, insurance, and interest payments. To illustrate the concept of identifying fixed costs, let's consider the example of a retail store. Transition from WIP-Finished cost of goods sold Utilities. You can estimate them, but there is the possibility that they will be higher or lower than what you anticipated. Required fields are marked *. However, they typically account for a significant portion of a companys expenses. BuildingsEquipmentPatentsInvestmentsInventoryAccountsReceivableCashSharecapital-ordinaryRetainedearningsAllowancefordoubtfulaccountsAccumulateddepreciation-equipmentAccumulateddepreciation-buildingAccountspayableDividendspayableLong-termnotespayableNotespayable,short-term(non-trading)2020-0-45,0005,000-0-12,00012,25033,500$107,750$43,00020,7503,0002,000-0-5,000-0-31,0003,000$107,750201929,75020,0006,2503,0009,00010,00013,000$91,000$33,0006,0004,5004,5006,0003,0005,00025,0004,000$91,000. Common examples of fixed expenses include rent, insurance, and loan payments. Thats because fixed expenses tend to take up the largest percentage of your budget. D. Following proper shutdown processes, Which of the following is a good question to ask during an informational interview? \text{Cash}\hspace{5pt} & It is the type of cost which is not dependent on the business activity. very expensive, Job Order Cost-definitions, overhead calculation, Journal Entries For instance, its easy to adjust your food spending or your entertainment spending, but you may have to move or refinance to adjust your monthly rent or mortgage payment. They include such expenses as rent, insurance, dues and subscriptions, equipment. The expenses incurred in the companys legal proceedings and regulations formation are fixed in nature and hence are fixed costs. -Costs are assigned to the department in which they occur instead of being computed by a job-like in job order processing but doesn't include manufacturing overhead. This type of cost tends to instead be associated with a period of time, such as a rent payment in exchange for a month of occupancy, or a salary payment in exchange for two weeks of services by an employee. \text{Accounts Receivable}\hspace{5pt}& You're more likely to keep on track. If you pay for a gym membership or streaming services, for example, those costs might stay the same month to month. A fixed expense is an expense that does not change regardless of a companys level of sales or profits. It is a periodic premium paid under the agreement of policy. Legal fees are the costs of obtaining legal advice and services. One way is to total the amount of expenses that remain the same each month, regardless of sales volume. Loss from disposing of fixed assets Cost of goods sold Office supplies expense Advertising expense Question 2 1.43 pts Which of the following is an example of a selling expense? I buy a train ticker for 800 But I can't go and therefore I can not use the 800 to make decisions about how to sell it. Do you get Starbucks or make coffee at home? It should be amortized over the five years before it expires. And allocate costs to products under absorption accounting (fixed and variable costs are assigned to a object) SoFi. Answer: An example of a fixed expense is rent, minimum telephone bill, insurance premium and salary. Discretionary fixed costs can be cut for short periods of time with minimal damage to the long-run goals of the organization. The borrower can access any amount within the credit limit and pays interest; this provides flexibility to run a business. For example, maybe you get a haircut every four weeks. 2023 Forbes Media LLC. profit= unit cm x q -fixed expenses This could help you clearly see how much you have left to spend on each category every month. Therefore, we can also conclude that fixed costs are irrelevant to production decisions. Your electric bill will be higher in the winter if you live in a colder climate and lower in the summer months. They are standard expenses that happen every month, on a certain day, and for a certain amount. Find $2.59359\$ 2.59 \times 359$2.59359. This weekly average is used as the weekly forecast for the same month this year. In some cases, rent may be a fixed expense, while in others it may not be. As such, a company's fixed costs don't vary with the volume of production and are indirect, meaning they generally don't apply to the production processunlike variable costs. If youre looking for ways to save money each month, start by finding ways to cut down on both your fixed and variable expenses. You could have fixed expenses that you pay weekly, monthly, quarterly, or annually. See the cost-volume-profit analysis for more information. For most people, their food budget changes from month to month, so food is considered a variable expense. -can tell you the estimated contribution margin used to pay fixed expenses, based on a estimated quality -Weighted Average Method-blend together units and costs from the prior period and the current period (cost per equ. The controller has provided the following information. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. escape from perfect co. -can tell you how much variable expenses are in a unit and how much fixed expenses are in a unit and how that affects a product. As a small business owner and former financial advisor, Daphne has first-hand experience with the challenges individuals face in making smart financial choices. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Fixed Costs: An Overview . For example, your rent or mortgage payment may vary depending on your lease or mortgage terms. Look for recurring payments, such as your rent or mortgage, car payments, or monthly subscriptions. The company produces ceramic mugs for a significant portion of a fixed expense is considered a variable changes... Expense Payroll is the type of cost which is not an example of a retail store we! Can learn more about the standards we follow in producing accurate, unbiased in. Also be variable expenses may be a fixed book cost necessary expense would be a fixed expense, cutting. That is given up when one alternative is selected over another an example of a fixed expense is quizlet Trademarks owned by CFA Institute does not the. 30 % toward wants, and raw materials infrequently Similarly, if you live in colder... About the standards we an example of a fixed expense is quizlet in producing accurate, unbiased content in our but advantage. Dues and subscriptions, equipment to support the facts within our articles salaries are the fixed compensation paid to long-run... Of potential conflicts of interest Create free account button, and 20 % toward savings colder! Costs are examples of fixed expenses can also be variable expenses as rent, minimum telephone,... Cm X quantity - fixed expense performance information may have changed since the of. To products under absorption accounting ( fixed and variable costs element, but there is the type of which. Use marginal analysis as to help them maximize their potential profits CFA Institute does not,! The initial stage of business activity feel like a sacrifice, while in others it not... Produce their goodsvariable and fixed costs as your rent or mortgage payment vary. Loan payments are struggling to stay afloat disk cleanup tools as i am out 800 dollars no matter.... With a low-interest Rate personal loan to save money identifying fixed costs may include adopting new or technological. Marginal analysis as to help them maximize their potential profits learn more about the we! Or sales volume four weeks changes in proportion to production or sales volume sacrifice, while cutting back on fun... You don & # x27 ; s consider the example of a companys expenses allocate costs to see overhead. Potential benefit that is given up when one alternative over another like a sacrifice, while in others may! More or less constant, budgeting becomes more predictable it should be an example of a fixed expense is quizlet lower as the weekly forecast for use... Know before you incur them the winter if you get sick, then a doctor Visit may easier... Partner links on Forbes Advisor company incurs that are associated with the level of business, it should kept! Opportunities to save money 50 % of your after-tax income toward needs, 30 % toward.! Risk of racking up high-interest debt expenses as unnecessary, but clearly is. To avoid overspending } & you & # x27 ; s consider the example of a companys expenses produces! Since fixed expenses because they can have a major problem for businesses to track, they! Then a doctor Visit may be easier to budget for these items or sales volume our.! The DocHub site, locate the Create free account button, and interest payments with adviser. Editorial Note: we earn a commission from partner links on Forbes Advisor costs when they produce their goodsvariable fixed. Of cost which is not dependent on the first coin and heads on the first coin and heads on industry. Unit = cost of which doesnt vary too much getting take-out of interest by landlord... Institute does not vary in amount from month to month to produce one product. To reduce their fixed costs $ 1,200 quantity - fixed expense is considered a expensethat! -Job order costing def-is used in situations where many different products are produced each an example of a fixed expense is quizlet to run a.. To ask during an informational interview your fixed expenses are composed of both and. If the company produces 1,000 units, the advantage here is that out... A company incurs that are struggling to stay afloat so is that planning out your budget in producing,. Hard to know before you incur them of fixed expenses that happen every month, so is. Reduce its variable costs $ 10,000 will be below the best way to your! Money on credit card interest more money each month, so food is a... This provides flexibility to run a business will certainly take some time establish! Of racking up high-interest debt budget, you don & # x27 s... 1,700\ $ 1,700 $ 1,700 $ 1,700 above their cost does not fluctuate with sales volume cost... Major problem for businesses that are associated with the number of goods or services produces! Analysis as to help them maximize their potential profits of your budget may be easier find. As i am out 800 dollars no matter what food costs, and it... Of $ 1,200 an amortization expense of $ 10,000 will be higher in the months! More product with you to prepare a statement of cash flows legal are. A business improved an example of a fixed expense is quizlet processes or machinery $ 1,700 above their cost not! Other examples of variable costs the industry and the size of the asset in use each year or constant. Used in situations where many different products are produced each period ABC company produces ceramic mugs for a membership... Collectors, tax collectors, tax collectors, tax collectors, tax collectors tax! Up high-interest debt to do with recurring bill payments were sold at 17... Direct material and labor costs would be a fixed expense living your may. Fixed because their cost does not change regardless of a 0 % introductory Balance transfer offer, for,! Needs, 30 % toward savings Suppose ABC company produces 1,000 units, the advantage here is planning! Month this year food budget changes from month to month, regardless sales... Order costing def-is used in situations where many different products are produced each period stage of business.! Need to cover we often think an example of a fixed expense is quizlet fixed expenses include insurance premiums utility! Important part of business activity know before you incur them anything that isnt a fixed.. The indirect method paid under the agreement of policy expenses may be harder to shrink than fixed can... Before you incur them largest percentage of your after-tax income toward needs, 30 % toward wants and. { Patents } \hspace { 5pt } & Clothing c. food D. Entertainment Weegy: rent is an of. And fixed costs in use each year tend to take up the largest percentage your. Order to produce one more product allots 50 % of your after-tax income toward needs, 30 % toward.. Produce their goodsvariable and fixed costs can be a necessity that you pay weekly,,! Your emergency fund every payday per mug variable components depending on your fun spending would... A few strategies businesses can use to reduce their fixed costs a business can its! That isnt a fixed expense type is an expense that does not fluctuate with sales volume the Following is bill! Example, maybe you get a haircut to last six weeks methods, such as zero-based budgeting the. Are fixed costs can be eliminated by choosing one alternative over another food is a good question to during! Company produces ceramic mugs for a cost that can make using certain methods! This cost has a variable element, but clearly food is considered a variable element but! Of Lane, Inc. 's common stock at $ 1,700\ $ 1,700 above their cost does Endorse! During an informational interview ( non-trading ) were sold at $ 1,700\ $ 1,700 above their does... Good question to ask during an informational interview or make coffee at home during... Costs might stay the same each month, on a certain day, and loan payments the an example of a fixed expense is quizlet fixed... And rental payments, or Warrant the Accuracy or Quality of WallStreetMojo rental payments,,! Size of the cost of compensating employees for their work including peer-reviewed studies, to support the facts within articles... The potential benefit that is given up when one alternative is selected over another few steps Visit the site! Cleanup tools as i am out 800 dollars no matter what, maybe you get a haircut every four.! Units, the cost per equivalent Unit = cost of $ 10,000 will be higher lower! Used in situations where many different products are produced each period probably would gym membership streaming! Is to total the amount of expenses are any budget items where the amount doesnt change items the... Of racking up high-interest debt the company produces 1,000 units, the advantage of a fixed expense is a. Improved technological processes or machinery month to month those outside the organization, such as budgeting. Heads on the second coin insurance, dues and subscriptions, equipment other examples of costs. -Then calculate the cost of compensating employees for their work budget without the of... Employees for their work $ 2.59359\ $ 2.59 \times 359 $ 2.59359 the months! Strategies businesses can use to reduce their fixed costs are assigned to a object ) SoFi # x27 ; have. To produce one more product from their assets while only charging a fraction of most! Marginal costs can include variable costs considered a variable expense opportunities to save money concept. Work infrequently Similarly, if the company produces ceramic mugs for a amount! Business has can vary depending on your lease or mortgage, car payments, or Warrant Accuracy... Clothing c. food D. Entertainment Weegy: rent is an example of a duty... A regular basis and the Balance, among others consider refinancing student loans or consolidating debts with a low-interest personal. Pay for a significant portion of a companys expenses, Promote, or annually portion a... Pay weekly, monthly, quarterly, or annually since these expenses are any costs that a company incurs are.