which one of the following is a fixed expense?
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Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.
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Fixed and Variable Expenses Law and Legal Definition. ... Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. They include such expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.
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In business, the term fixed asset applies to items that the company does not expect to consumed or sell within the accounting period. ... Examples of fixed assets include manufacturing equipment, fleet vehicles, buildings, land, furniture and fixtures, vehicles, and personal computers.
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Is depreciation a fixed cost? Depreciation is a fixed cost using most of the depreciation methods, since the amount is set each year, regardless of whether the business' activity levels change. The exception is the units of production method.
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Fixed interest securities are a way for companies or governments to raise money by borrowing money from investors. Securities issued by the UK Government are also called 'gilts' or 'gilt-edged securities', while securities issued by companies are known as corporate bonds.
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Any tangible item not consumed within one accounting cycle (typically a year) and providing long term utility is referred to as a Fixed Asset. ... Examples of tangible items include tools, site development costs (pavement, curbing, light poles, even trees), structures and trucks.
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A fixed budget is a budget that doesn't change due to any change in activity level or output level. The flexible budget is a budget that changes as per the activity level or production of units. ... Flexible budget, on the other hand, is semi-variable. One part of it is fixed and another change as per the activity level.
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Fixed Income X Variable Income Gains or losses on initial capital; In fixed income the investor does not lose the capital that is applied initially, even if the interest is not a great thing; In variable income, if the interest is negative, the investor may lose part of the money invested initially.
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Debt investments, such as bonds and mortgages, specify fixed payments, including interest, to the investor. Equity investments, such as stock, are securities that come with a "claim" on the earnings and/or assets of the corporation.
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Fixed costs are costs of production which are constant whatever the level of output. Average fixed costs are total fixed costs divided by the number of units of output, that is, fixed cost per unit of output.
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Whats the difference between "fixed" and "flexible" expenses? Fixed: expenses that are the same every month. EX: car payment. Flexible: expenses that can change from month to month.
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In a fixed-term savings account of more than a one-year term, interest is usually credited annually and not withdrawn until the end of the fixed term.
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The definition of fixed expenses is “any expense that does not change from period to period," such as mortgage or rent payments, utility bills, and loan payments. The amounts may vary slightly, which may be the case with utilities, but you know they are due on a regular basis. ... Lease / car loan payment.
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Fixed annuities are insurance contracts that pay a guaranteed rate of interest on the account owner's contributions. ... The earnings in a fixed annuity are tax deferred until the owner begins receiving income from the annuity.
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A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E).
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Fixed costs are costs that does not depend on the firms' level of output. -These costs are incurred even if the firm is producing nothing. ... Variable costs will increase with increasing levels of output.
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While a fixed charge is attached to an asset that can be easily identified, a floating charge is a charge that floats above ever-changing assets. The floating charge, or a security interest over a fund of changing company assets, allows for more freedom for a business, than the lender.