A court ordered method of debt collection in which a portion of a persons salary is paid to a creditor. Periodic expenses include things like annual vehicle registration major car repairs and holiday gift giving.
Is there a difference between an expense and an expenditure.
A flexible expense and a periodic expense are basically the same thing.. Flexible expenses are costs that are not considered to be fixed or set but can be reduced or increased on an as-needed basis. The truck was then given a minor overhaul at a cost of 192 and new super tires were mounted on the truck at a cost of 1920 less a trade-in allowance of 240 for the old tires. Fixed Expenses Periodic Fixed Expenses Flexible Expenses and Indebtedness.
Examples of expenses include the cost of the goods that were sold during the current period and the following which also occurred. Spending money on entertainment and clothing represent flexible expenses. Fixed expenses cost the same amount each month.
Manufacturing costs are the expenses directly related to building the product. Spending that changes from month to month that you have control over. 618 6 103.
These bills cannot easily be changed and are usually paid on a regular basis such as weekly monthly quarterly or from year to year. Depending on your situation some expenses for example long distance calls or a cell phone may be considered ﬂexible rather than ﬁxed expenses. Even expenses that must be incurred such as a grocery bill can be consid.
The equation is as follows. Flexible expenses stand in contrast to fixed expenses also known as inflexible expenses. The core of accountancy is the presentation of financial dealings in a structured way that makes it easily understandable for the reader.
There are three basic elements of the accounting equation ie assets liabilities and owners equity. Periodic Expenses Periodic expenses are a little more challenging to budget for. Variable expenses are discretionary and can be modified by your financial behavior.
Fixed expenses savings expenses and variable costs are the three categories that make up your budget and are vitally important when learning to manage your money properlyWhen youve committed to living on a budget you must know how to put your plan into action. The 3 types of expenses include. The truck was placed in service on 2009 April 1 at which time it had an estimated useful life of five years and a salvage value of 3360.
Many corporation expenses as well as individual expenses are actually flexible in nature in that there are ways to manipulate the amount of the expense and still remain within a balanced budget. A flexible expense and a periodic expense are basically the same thing. Your mortgage payment is a fixed expense.
Flexible Spending Accounts aka Section 125 Cafeteria Plans may qualify one groups opinion of eligible expenses note boutique Theoretically DPC should qualify if structured properly. Fixed variable and periodic. Fixed expenses are the easiest ones to grasp and usually the easiest to plan for.
Expenses that stay basically the same from month to month such as rent transpotation and tuition. A court-ordered method of debt collection in which a portion of a persons salary is paid to a creditor. Similar to fixed expenses we have little control over periodic expenses but where fixed expenses typically recur on the same date every month periodic ones are what I call expected surprise expenses.
In personal budgeting a flexible expense is a non-essential expense that can be cut back or eliminated. Assets Liabilities Owners Equity The owners equity is derived from adding. Its much easier to budget for fixed expenses than it is to budget for a variable expense or discretionary expense.
A flexible expense and a periodic expense are basically the same thing. Be sure to adjust the budget categories to best reﬂect your needs and lifestyle. Both production costs and manufacturing costs must be included in the calculation of the per-item cost of doing business.
Include 35 as your monthly holiday expense in your monthly budget. Report all expenses as monthly. Fixed expenses occur in predictable amounts and are usually paid in monthly intervals.
They happen regularly and are the same cost every time. For things you know are going to come up at least once a year set aside a little bit each month to cover the cost. Periodic expenses also occur in predictable amounts and intervals but are much less frequent ie.
Spending that changes from month to month that you have control over. Expenses that stay basically the same from month to month such as rent transportation and tuition. To figure expense as a monthly amount take 620 and divide by 6.
Fixed Variable and Periodic. These are the hardest expenses to plan for and the ones most likely to take you by surprise. In other words the practice would want to bill in arrears focus on preventive nature consider itemized statement of preventive services etc.
Stash that money an account separate from the account you use daily so youre not tempted to use it. You pay 620 every six months for car insurance. In personal finance flexible expense are costs that are easily changed reduced or eliminated.
Second Type of Expenses. An expense is reported on the income statement in the period in which the cost matches the related sales has expired was used up or had no future value. A normal budget breaks down expenses into three categories.