Variable Expenses Variable expenses are still necessary costs, but the amount changes every month, often in concert with your usage or choices. Maintenance ...This is definitely a variable operating expense. Fixed costs include rent, utilities, payments on loans, depreciation and advertising. For instance, if a company purchases a product for $30 and then sells it for $50, its cost of goods sold will be a constant rate of 60%. I need to know which of the following expenses are fixed and variable: Indirect materials 2,000 Administrative salaries 35,000 Utilities 21,000 Rent 16,000 Miscellaneous costs 3,000 Insurance 7,000 Advertising expense 120,000 Amortization 2,400 Shipping expense 10,000 Marketing report 2,000 According to me the fixed expenses can be classfied into Manufacturing O.H, Admn expenses, … _____ is considered a variable operating expense of an automobile. Which of the following is a variable cost in an insurance company? On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. 12. C. Rent on the production and office facilities. Variable costs are the costs of labor or raw materials because these items change with sales. And it can increase your financial stability at the same time. A) Rent B) An installment loan payment C) A mortgage payment D) A monthly parking fee E) A telephone bill Answer: E Difficulty: Med LO: 3 Page: 79 52. Variable costs change with the amount of products or services you sell. This expense is directly related to sales. When classified according to traceability to cost objective, the cost of raw materials is considered a: COST CONCEPTS AND CLASSIFICATIONS 1 DRAFT. A cost to a person or business that varies over time according to a number of factors. The variable cost to make all of the cakes is $72. Variable costs are expenses that vary in proportion to the volume of goods Inventory Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated. B. Raw Materials C. Interest D. Insurance This problem has been solved! Variable costing (also known as direct costing) treats all fixed manufacturing costs as period costs to be charged to expense in the period received.Under variable costing, companies treat only variable manufacturing costs as product costs. C) the effect of the order on regular sales. As production output increases or decreases, variable overhead moves in tandem. Knowing fixed and variable expenses in your budget is important. It can help you create a budget that reduces your stress level. Variable costs are unfixed, discretionary costs that include gas, clothing, entertainment, pet supplies and dining out at restaurants. Variable expenses, such as utility bills, may make it difficult to accurately budget. B. Salary paid to the chief financial officer. A. C. Total costs for a company are usually composed of which of the following? This is a fixed cost. Sometimes these costs remain … A typical household has normal monthly expenses like water, electricity, mortgage, credit card, or other items. Raw Materials C. Interest D. Insurance Select One: A. B) there is available excess capacity. Which of the following would be considered a variable cost? This is a variable cost. A variable cost is a cost that changes in relation to variations in an activity.In a business, the "activity" is frequently production volume, with sales volume being another likely triggering event. A variable cost is a corporate expense that changes in proportion to production output. New questions in Mathematics. D. 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