What is the meaning of fixed expenses?

Fixed expenses: These are costs that largely remain constant, such as your monthly rent or mortgage. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.

What is a fixed expense kid definition?

The definition of fixed expenses is “any expense that does not change from period to period,” such as mortgage or rent payments, utility bills, and loan payments.

What are examples fixed costs?

Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

What are fixed expenses vs variable?

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 anything you buy from a store).

What are the 4 types of expenses?

Terms in this set (4)
  • Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).
  • Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)
  • Intermittent expenses. …
  • Discretionary (non-essential) expenses.

What are the 3 types of expenses?

3 Main Types of Expenses
  • Fixed expenses. Fixed expenses are the easiest to budget for. Because they are fixed, they are easy to predict. …
  • Periodic expenses. Periodic expenses are similar to fixed expenses. However, periodic expenses are usually less frequent and the amount can vary. …
  • Variable expenses.

What is a fixed expense quizlet?

Fixed Expense. Expense that stays the SAME from month to month.

Which is an example of a fixed expense quizlet?

A fixed variable expense is a cost that you pay every month, but the amount can change from month to month. (A good example of this is your electric bill. Your electric bill will be higher in the winter if you live in a colder climate and lower in the summer months.

What is a variable expense example?

Examples of variable costs include a manufacturing company’s costs of raw materials and packaging—or a retail company’s credit card transaction fees or shipping expenses, which rise or fall with sales. A variable cost can be contrasted with a fixed cost.

Is rent a fixed expense?

Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.

What are expenses that do not change called?

What Is a Fixed Cost? The term fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities.

What is the difference between a fixed expense and a variable expense quizlet?

Fixed expenses are different from variable expenses because fixed expenses are consistent cost that need to be paid at specific times. Variable expenses are inconsistent costs that vary depending on the choices you make.

Which of the following is considered a fixed monthly expense?

What Are Fixed Expenses? Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also fixed payments, along with your monthly electric and water bills.

What is the opposite of fixed expenses?

Variable Expenses Definition. Variable expenses are the opposite of fixed expenses. A variable expense may recur from month to month. But the amount you pay in any given month could be different from previous payments or ones you’ll make in the future.

Is food a fixed expense?

Key Takeaways. Fixed expenses, such as rent, stay the same from month to month. Variable expenses are ones that can change, such as gas or food. Cutting costs on fixed expenses can help you save money by lowering your overall bills.

Is water 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.

Is insurance a fixed expense?

Fixed costs may include lease and rental payments, insurance, and interest payments.

Is furniture a fixed cost?

Fixed expenses might include: Lease or a mortgage. Other capital expenses, like the cost of buying business assets – equipment, vehicles, furniture.

Is rent a fixed or variable cost?

Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.

Why is salary a fixed cost?

Fixed and Variable Payroll

Any employees who work on salary count as a fixed cost. They earn the same amount regardless of how your business is doing. Employees who work per hour, and whose hours change according to business needs, are a variable expense.

Is retirement a fixed expense?

Saving for retirement, emergencies, and other financial goals could be considered a fixed expense to ensure you’re working towards building wealth and preparing for the future.