Is clothing a fixed or variable expense?
Variable costs are unfixed, discretionary costs that include gas, clothing, entertainment, pet supplies and dining out at restaurants. Your electric bill is a variable expense, too, unless you've arranged to have even billing, where the payment doesn't change from month to month.
Examples of variable expenses
Common variable expenses include: Groceries and dining out. Clothing. Personal care.
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. These costs might fluctuate over a week, month or year.
Grocery shopping is also a variable expense. Your utility bills may also be variable expenses because they may change from month to month. For example, you might spend more on electricity in July than you do in December because of air conditioning.
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).
Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs. Since you have to pay fixed costs regardless of how much you sell, you should be careful about adding fixed costs to your small business.
- Packaging costs.
- Utilities, like electricity and water.
- Credit card and bank fees.
- Hourly wages and direct labor.
- Shipping costs.
- Raw materials.
- Sales commissions.
Health, disability or life insurance premiums. Property taxes. Childcare expenses. Student loan or car loan payments.
Fixed costs remain the same throughout a specific period. Variable costs can increase or decrease based on the output of the business. Examples of fixed costs include rent, taxes, and insurance. Examples of variable costs include credit card fees, direct labor, and commission.
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 food a variable expense?
Variable expenses include such things as groceries, gas for your vehicle, utilities, entertainment expenses, and clothing.
Non-fixed expenses are variable expenses that can fluctuate from month-to-month. In this article, we will explore the various types of non-fixed expenses, and how to keep variable spending from breaking your budget. These expenses can be hard to manage because they include both your needs and your wants.
A common example of a fixed cost is rent because rent stays constant regardless of the quantity of goods or services produced. Some other examples of fixed costs include: Lease payments. Rent or mortgage payments.
| Q. | Which of the following is not an example of variable cost |
|---|---|
| B. | piece-rate wages paid to manufacturing workers |
| C. | wood used to make furniture |
| D. | commissions paid to sales personnel |
| Answer» a. straight line depreciation on a machine expected to last five years | |
Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance payments, property taxes, interest expenses, depreciation, and some utilities.
- Production Supplies. Production supplies, such as machinery oil, are consumed based on the amount of machinery usage, so these costs vary with production volume.
- Billable Staff Wages. ...
- Commissions. ...
- Credit Card Fees. ...
- Freight Out.
Variable costs change 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.
Variable costs vary with increases or decreases in production. Fixed costs remain the same, whether production increases or decreases. Wages paid to workers for their regular hours are a fixed cost. Any extra time they spend on the job is a variable cost.
- Raw materials involved in producing goods.
- Direct labor costs.
- Shipping fees.
- Taxes.
- Sales commissions.
- Utility costs.
Variable expenses include such things as groceries, gas for your vehicle, utilities, entertainment expenses, and clothing.
Which of the following is not an example of variable expenses?
| Q. | Which of the following is not an example of variable cost |
|---|---|
| B. | piece-rate wages paid to manufacturing workers |
| C. | wood used to make furniture |
| D. | commissions paid to sales personnel |
| Answer» a. straight line depreciation on a machine expected to last five years | |
A few examples of flexible expenses include what you pay for monthly groceries, clothing, and transportation, as the total cost of all of these things will most likely vary. The biggest difference between flexible and fixed expenses is that flexible expenses give you more control over how much money you spend on them.
