A. rent B. interest payment on a loan C. cost of raw materials D. salary of a permanent, full-time worker Weegy: An example of a variable cost is cost of raw materials. 35 times. Select One: A. Variable costs such as commissions, bonuses and utility bills vary based on product production and sales for the period, whereas fixed costs do not tend to fluctuate. University. What is a variable expense? Saving for retirement, emergencies, and other financial goals could be considered a fixed expense to ensure you're working towards building wealth and preparing for the future. a. insurance for employee automobiles Incorrect b. feed for cattle at a feed lot The definition of a variable cost is a cost that changes with changes in volume or activity. 1  B. The total fixed costs in a unit are those costs that do not change as the volume of patients changes. excessive and to be avoided if at all possible. The cost of property & casualty insurance. A. 2  As sales go up, so do variable costs. Variable Cost: A variable cost is a cost that varies depending on the level of output. Variable costs change with the amount of products or services you sell. Thus, the materials used as the components in a product are considered variable costs, because they vary directly with the number of units of product manufactured. New questions in Mathematics. The more a car is driven, the more often the oil-and-lube must be executed, as well as purchase of new tires, as well as the 30,000 mile servicing, etc. Variable selling and administrative costs also must be distinguished from variable manufacturing costs, which often have similar account names. a. sales commission b. hourly wages c. rent d. materials 2 See answers thegreatandpowe thegreatandpowe The answer is c. Rent abreen609 abreen609 The correct answer is rent. Variable expenses are defined as such because the amount you spend may vary each month. Variable expenses are tied in to your business's productivity. That includes labor costs (direct labor) and raw materials (direct materials). The definition of variable costs can differ, but we like to define them as anything you can buy in a store (for example groceries, gas, or coffee) or expenses that are within your control. Variable expenses are those that can change based on things like weather, cost, demand, or many other variables. Variable costs are costs that change regularly while fixed costs remain the same all the time. Grocery shopping is also a variable expense. Hence when its sales are $10,000 the cost of goods will be $6,000. Variable costs are directly related to sales volume. Raw Materials C. Interest D. Insurance This problem has been solved! 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, … B) there is available excess capacity. Answer and Explanation: Buying gas for your car each month is a variable expense, as are car repairs and maintenance. Contingent rents (ASC 840-10-25-5) are not currently treated as MLPs; as a result, a contract that has a considerable variable component as well as a fixed amount is not likely to meet the 90% test, and the lease will probably be considered an operating lease in its entirety. Knowing fixed and variable expenses in your budget is important. a ) Rent b ) Raw materials c ) interest d ) Insurance Which of the following is considered a variable cost? 12. What are Variable Costs? C. Total costs for a company are usually composed of which of the following? Although variable costs are quite often discretionary expenses, some may be necessities. C) the effect of the order on regular sales. However, if your business includes manufacturing, the electricity can be considered a variable cost, as it will likely fluctuate with production. Question: Which Of The Following Would Be Considered A Variable Expense? A variable costing income statement is one in which all variable expenses are deducted from revenue to arrive at a separately-stated contribution margin, from which all fixed expenses are then subtracted to arrive at the net profit or loss for the period.. B) the variable costs associated with the special order. Sometimes these costs remain … When the sales are $30,000 the cost of goods sold will be $18,000. This is a variable cost. A. employee salaries B. rent expense C. materials purchases D. heating bill E. all of the above. Variable cost/total quantity of output = x variable cost per unit of output Variable cost per unit = = $72/72 = $1. Variable costs are unfixed, discretionary costs that include gas, clothing, entertainment, pet supplies and dining out at restaurants. Raw Materials C. Interest D. Insurance Select One: A. D. Wages paid to customer service representatives. It can help you create a budget that reduces your stress level. One way for a company to save money is … User: Which of the following would be considered an example of a variable cost? As sales go down, variable costs go down. A. A decrease in net worth would be the result of A) income greater than expenses for a month. 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. Question 15 A. fixed and variable costs B. fixed and mixed costs Variable overhead is the cost of operating a business, which fluctuates with manufacturing activity. The variable cost to make all of the cakes is $72. Which of the following would be considered a variable cost? Pierre’s variable cost just to bake cakes might look like this. As production output increases or decreases, variable overhead moves in tandem. And it can increase your financial stability at the same time. Fixed costs include rent, utilities, payments on loans, depreciation and advertising. In other words, with either a high or a low patient census, expenses related to rent, utilities, loan payments, administrative salaries, and salaries of the minimum number of staff to keep a unit open must be paid. Variable Overheads; Such Overhead expenses are the ones that vary in direct proportion to the volume of output. You can define variable expenses as the costs that change month to month, depending on quantity or usage. Salary paid to the chief financial officer. 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. This expense is directly related to sales. The logic behind this expensing of fixed manufacturing costs is that the company would incur such costs whether a plant was in production or idle. Rent B. A. _____ is considered a variable operating expense of an automobile. You can decide how much and if you will spend on these items. 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. darkbakshi|Points 706| User: Which of the following business practices, which forced competitors to shut down, was Standard Oil accused of … For example, shipping costs, costs for raw materials, or for employees who are making and shipping products or providing services are usually variable. A cost to a person or business that varies over time according to a number of factors. Which of the following expenses is not a variable cost? Variable Expenses Variable expenses are still necessary costs, but the amount changes every month, often in concert with your usage or choices. Answer to Which of the following would be considered a variable expense ? On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. Variable costs are the costs of labor or raw materials because these items change with sales. A variable cost is a corporate expense that changes in proportion to production output. Which of the following payments would be considered a variable expense? When classified according to traceability to cost objective, the cost of raw materials is considered a: COST CONCEPTS AND CLASSIFICATIONS 1 DRAFT. The more in demand your products are, the more the costs go up. 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%. Fixed expenses remain the same every month. The cost of trade credit involving cash discounts as a form of short-term financing is: Answer. Rent B. This is a fixed cost. For example, a dental office must buy dental supplies, which usually cost about the same. Which of the following statements is true regarding fixed and variable costs? D. A manager should always reject a special order if A) the special order price is less than the variable costs of the order. Have you ever considered the difference between fixed and variable expenses? Which of the following is a variable cost in an insurance company? The second kind of costs to consider are your variable expenses. What Is a Variable Cost? usually greater than the cost of factoring receivables. Maintenance ...This is definitely a variable operating expense. Variable Costs – Definition and Examples. Variable expenses, such as utility bills, may make it difficult to accurately budget. If Pierre’s recipe makes 6 dozen cakes (72 cakes), the variable cost per unit would be $1. Clara’s Costumes is a retailer of costumes, primarily purchased for Halloween. Which of the following costs would be considered variable? The key is that it must change as volume changes. These overhead expenses are directly affected by business activity. B. Another example of a variable expense is a retailer's cost of goods sold. A typical household has normal monthly expenses like water, electricity, mortgage, credit card, or other items. Both costs are constant when considered on a per-unit basis. The amount of raw materials and inventory you buy and the costs of shipping and delivery are all variable. Variable costs (aka variable expenses) Falling under the category of cost of goods sold (COGS), your total variable cost is the amount of money you spend to produce and sell your products or services. Better money management helps create the financial peace we all desire. D) fixed costs that will not be affected by the order. C. Rent on the production and office facilities. Variable Overhead Examples include Shipping expenses, Advertising Costs, etc. usually greater than the cost of commercial bank credit. the lowest of any form of short-term financing. 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