Answer: The most common example of fixed costs include
lease and rent payments , utilities , insurance , certain salaries , and interest payments
.
Which of the following is an example of a fixed cost quizlet?
Terms in this set (10)
is a cost that remains constant, in total, regardless of changes in the level of activity. Examples of fixed costs include
straight-line depreciation, insurance, property taxes, rent, supervisory salaries, administrative salaries, and advertising
.
Which of the following are examples of possible fixed cost?
Common examples of fixed costs include
rental lease or mortgage payments
, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.
Which is the best example of a fixed cost?
- Amortization. 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.
- Depreciation. …
- Insurance. …
- Interest expense. …
- Property taxes. …
- Rent. …
- Salaries. …
- Utilities.
What is an example of a fixed product cost?
Fixed costs are costs that do not change when output changes. Examples include
insurance, rent, normal profit, setup costs and depreciation
.
Is rent a fixed expense?
Fixed costs remain the same
regardless of whether goods or services are produced or not. … The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.
Which of the following is an example of resourcefulness?
Resourcefulness is defined as the ability and creativity to cope with difficulties.
If you are stranded in a house without power and you are able to find a way to get a fire going and cook yourself some lunch
, this is an example of resourcefulness.
Is rent a variable expense?
Fixed expenses: These are costs that largely remain constant, such as your monthly rent. Variable expenses: These are
costs that vary or are unpredictable
, such as dining out or car repairs.
What are fixed costs quizlet?
A fixed cost is
a cost that in total remains constant as volume of activity changes
but on a per unit basis varies inversely with changes in volume of activity. … An example of a fixed cost is a supervisor's salary in relation to units produced.
What are examples of variable expenses?
Common examples of variable costs include
costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, and commissions
, and certain utilities (for example, electricity or gas that increases with production capacity).
What is fixed cost example?
Fixed costs are usually negotiated for a specified time period and do not change with production levels. … Examples of fixed costs include
rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities
.
Is Accounts Payable a fixed cost?
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 includes rent payable, salaries payable, interest expenses and other …
What are examples of direct cost?
- Direct labor.
- Direct materials.
- Manufacturing supplies.
- Wages for the production staff.
- Fuel or power consumption.
Is overhead a fixed cost?
Fixed overhead costs are
the expenses that do not change in the short term
. They remain the same no matter how much you produce or sell. Some examples of fixed costs are your office and factory building rent, fixed salaries, the yearly insurance premiums and depreciation.
What are the types of fixed cost?
- Rent/lease payments or mortgage.
- Salaries.
- Insurance.
- Equipment lease payment.
- Car lease payment.
- Utility payments.
- Phone service.
- Business insurance.
Is salary a fixed or variable cost?
Wages paid to workers for their regular hours are
a fixed cost
. Any extra time they spend on the job is a variable cost.
