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 .
Why might variable expenses change a great deal at different times?
The variable expense that can change a great deal at different times of a year is heating and cooling cost . Cooling and heating services are a variable cost because they are subject to climatic conditions. They are unpredictable and people don't use these services the same way throughout the year.
When should fixed and variable monthly 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.
What expenses are usually fixed?
Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance, property taxes, interest expenses, depreciation , and potentially some utilities.
What is the simplest change that can be made to the budget to produce more savings next month?
What is the simplest change that can be made to the budget to produce more savings next month? Decrease food expenses .
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 are the main purposes of a budget select three options?
what are the main purposes of a budget? to record the past income and spending . to take a it a student loan from the bank. to plan future income and spending. to apply for a mortgage. to balance available resources and expenses.
What part of income should someone take savings?
Here's a final rule of thumb you can consider: at least 20% of your income should go towards savings. More is fine; less may mean saving longer. At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items.
Why is net income lower than gross income fixed spending?
The net income is lower than the gross income because of withholdings . Further Explanation: Gross Profit: It defined as the profit that a company earns after reducing the costs that are related to manufacturing and selling the products, or providing the services.
What are the 4 types of expenses?
If the money's going out, it's an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).
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 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 is an example of income deduction?
For example, if you earn $50,000 in a year and make a $1,000 donation to charity during that year , you are eligible to claim a deduction for that donation, reducing your taxable income to $49,000. The Internal Revenue Service (IRS) often refers to a deduction as an allowable deduction.
What is net income lower than gross income?
Gross income is typically the larger number, because in most cases it's the total income before accounting for deductions. Net income is usually the smaller number, as that's what left after accounting for deductions or withholding.
Which items in the budget are fixed expenses select all that are correct?
- Mortgage(s)
- Rent.
- Property taxes (if paying monthly)
- Strata fee / condo fee.
- House / tenant insurance.
- Utility bills (cable, cell, electricity, water, etc.)
- Lease / car loan payment.
- Vehicle insurance (if paying monthly)
