ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
an asset
|
|
|
a variable expense
|
|
|
a fixed expense
|
|
|
a cash inflow
|
Detailed explanation-1: -Examples of variable costs include raw materials, labor, utilities, commission, or distribution costs.
Detailed explanation-2: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs. Since you have to pay fixed costs regardless of how much you sell, you should be careful about adding fixed costs to your small business.
Detailed explanation-3: -Examples of variable expenses Some examples of variable costs include: Food costs, such as groceries and dining out. Clothing. Gasoline.
Detailed explanation-4: -Utilities are a variable cost because the amount of money spent may change depending on the amount of electricity and water used during the billable time period.