This textbook is available atAmazon.com Logo
New Perspectives Microsoft Office 365 & Excel 2019 Comprehensive 1st Edition

New Perspectives Microsoft Office 365 & Excel 2019 Comprehensive (1st Edition)

Book Edition1st Edition
Author(s)Carey, Parsons
ISBN9780357025765
PublisherCengage
SubjectComputer Science
Section 8.1: Session 8.1 Visual Overview: Data Tables and What-If Analysis
Section 8.2: Session 8.2 Visual Overview: What-If Scenarios
Section 8.3: Session 8.3 Visual Overview: Optimal Solutions with Solver
Chapter 8, Section 8.1, Quick Check , Exercise 1
Page EX 8-21

Describe the difference between a variable expense and a fixed expense.

Explanation

The two main kinds of costs that an organization incurs while creating merchandise and ventures. 

Variable expenses vary with the measure of yield created .  

 

In contrast to variable costs, an organization's fixed expenses do not change with the volume of creation. Fixed expenses remain the same as before regardless of products or administrations are created or not. 

Verified Answer

Fixed expenses are expenses that remain consistent for a while regardless of the degree of outputs. It is also called as overhead costs, period costs or supplementary costs.  

Fixed costs are time-related.

 

 

Variable expenses are expenses that change proportionally and relatively to the adjustments in business activity level or volume. It is also known as prime costs or direct costs.

Variable costs are volume-related.

How would you rate this answer and explanation?
Did you like this example?
Subscribe for full access
Page EX 8-21