Part A: In two or more sentences, explain what a variable expense is and provide at least two examples, Part B: In two or more sentences, explain what a fixed expense is and provide at least two examples,​

Respuesta :

The fixed and variable expense is an important component of a company's operation.

What is Fixed expense?

It is an expense that do not change from period to period, that is, they remain constant.

Some example of Fixed expense includes:

  • mortgage,
  • rent payments,
  • utility bills etc

What is Variable expense?

It is an expenses that usually varies depending on the firm usage of products or services.

Some example of Variable cost includes:

  • sales commissions
  • direct labor costs
  • cost of raw materials etc

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