What are 4 common variable expenses?

What are 4 common variable expenses?

Health, disability or life insurance premiums. Property taxes. Childcare expenses. Student loan or car loan payments.

What is fixed and variable cost example?

Fixed costs are time-related i.e. they remain constant for a period of time. Variable costs are volume-related and change with the changes in output level. Examples. Depreciation, interest paid on capital, rent, salary, property taxes, insurance premium, etc.

What are 5 examples of variable expenses?

Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.

What are variable costs in a business?

A variable cost is an expense that rises or falls in direct proportion to production volume. Variable costs differ from fixed costs, which remain the same even as production and sales volume changes. Common variable costs include: Raw materials.

What are examples of fixed cost?

Examples of fixed expenses

• Rent or mortgage payments.
• Car payments.
• Other loan payments.
• Insurance premiums.
• Property taxes.
• Phone and utility bills.
• Child care costs.
• Tuition fees.

Is salary a variable cost?

Annual salaries are fixed costs but other types of compensation, such as commissions or overtime, are variable costs.

Is rent a variable cost?

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.

What are two variable costs examples?

Examples of variable cost. Here are some of the most common types of variable costs for a business: Direct materials. Packaging materials. Piece-rate labor.

Which of the following is variable cost?

Wages paid to the factory labour are costs that are directly proportional to the level of production. If zero output is being produced then these costs do not have to be incurred. These costs vary with the level of output produced. Therefore, they are classified as variable costs.

Is electricity a fixed or variable cost?

However, the cost of electricity is a variable cost since electricity usage increases with the number of products that are produced or manufactured. In short, if the total cost associated with the cost object changes when the production amount changes, it’s likely a variable cost.

Which of the following is the best example of a variable cost?

Wages is a variable cost because variable cost change with output and are directly associated with business activity….

Are groceries variable expense?

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.

Is a cell phone bill a fixed or variable expense?

Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also fixed payments, along with your monthly electric and water bills.

What are examples of semi variable costs?

Examples of semi-variable costs include:

• Repairs.
• Monthly telephone charges.
• Indirect materials.
• Indirect labor.
• Fuel.
• Power.