What Is Most Likely The Reason Variable Expenses Should Be Planned After Fixed Expenses Fixed Expenses Are Deducted From Gross Income And Variable Expenses Come From Net Income?

It would not affect gross income. earn more money. What is most likely the reason variable expenses should be planned after fixed expenses?

Fixed expenses are required and constant, but variable expenses are more flexible

.

What are fixed expenses and variable expenses?

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.

When should fixed and variable monthly budget expenses first be planned?

When should fixed and variable monthly budgeted expenses first be planned?

at the end of each month

. day by day during the month. at the start of each month.

Should variable expenses be the same as fixed expenses?

Variable costs vary based on the amount of output produced. Variable costs may include labor, commissions, and raw materials.

Fixed costs remain the same regardless of production output

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

Which expenses are variable expenses?

• Rent.
• Insurance payments.
• Most loan payments.
• Dues and subscriptions.
• Annual salaries.

What is most likely the reason variable expenses should be?

a variable expense. … What is most likely the reason variable expenses should be planned after fixed expenses?

Fixed expenses are required and constant

, but variable expenses are more flexible.

Which is the best way to achieve long term financial goals?

Which is the best way to achieve long-term financial goals?

Save more money from net income

.

What is a fixed expense example?

Common examples of fixed costs include

rental lease or mortgage payments, salaries, insurance, property taxes, interest expenses, depreciation

, and potentially some utilities.

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).

Is electricity a fixed expense?

Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. … However,

utilities are generally considered fixed costs

, since the company must pay a minimum amount regardless of its output.

Is food a fixed or variable expense?

A

variable expense

is one that fluctuates each month. Some examples of variable expenses you may have can include: … Food expenses.

Are groceries a variable expense?

Variable expenses are

costs that change over time, such as groceries or

movie tickets. Because these costs might fluctuate over a week, month or year, it can be challenging to pinpoint what you’ll spend.

How do you calculate variable expenses?

To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this:

Total Variable Costs = Cost Per Unit x Total Number of Units.

Which two expenses are considered variable nondiscretionary expenses?

• Food.
• Utilities.

How do you reduce variable expenses?

1. Find a Financial Product with a Fixed Interest Rate. …
2. Negotiate Discounts with your Providers. …
3. Apply the Principles of Lean Management. …
4. Improve Production and Sales Processes. …
5. Improve your Customer-Centered Areas. …
6. Implement Business Technology. …
7. Use Social Media.

What are some examples of fixed and variable costs?