An expense is variable when its total amount changes in proportion to the change in sales, production, or some other activity. In other words, a variable expense increases when an activity increases, and it decreases when the activity decreases. Examples of Variable Expenses Assume that a web...
Keep a budget buffer in a savings account to provide a safety net when variable expenses are higher than expected (or when unexpected expenses pop up). What is a variable expense? Variable expenses change, often monthly, making them less predictable and trickier to budget for. That makes it ...
What is a contra expense account? What is a fixed expense? What is a variable expense? Is the reversal of a previous year's accrued expense permanent? Related In-Depth Explanations Accounting Basics Bookkeeping Income Statement Mark the Question as Read Advance...
What is a retail purchase? What is total variable cost? What is price skimming in business? What is a deferred contract cost? What is a disposition in investing? What is a variable expense? What is price skimming? What are relevant costs?
Alternate names: Variable expense, controllable expense A few examples of flexible expenses include what you pay for monthly groceries, clothing, and transportation, as the total cost of all of these things will most likely vary. Note The biggest difference between flexible and fixed expenses is th...
What Is a Variable Cost? A variable cost is an expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company's production or sales volume—they rise as production increases and fall as production decreases. ...
Semi-variable administrative expenses can include salaries, audit and legal fees, vehicle use, and commissions. They can also include utility costs that charge a base amount due plus an extra expense associated with usage.3 What Is Depreciation in Accounting?
What are Variable Expenses? What is a Capitalized Cost? In Finance, what is an Emergency Fund? What is a Loss Adjustment Expense? What is a Discretionary Account? What is a Discretionary Trust? Discussion Comments Share WiseGeek, in your inbox ...
What is a variable cost? In a business context, a variable cost is an expense that varies depending on production or sales levels. Unlike fixed costs, which remain the same regardless of output, variable costs may change based on business activity. Variable costs are also pivotal in ...
Knowing the difference between fixed expenses and variable expenses helps you create a budget and stay on track of reaching your financial goals.