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-   -   Fixed and Variable Expenses (https://www.askmehelpdesk.com/showthread.php?t=347476)

  • Apr 29, 2009, 01:09 AM
    ARTHIV
    Fixed and Variable Expenses
    Please provide with the various fixed and variable expenses of automobile manufacturing firms
  • Apr 29, 2009, 02:29 AM
    ROLCAM

    You try and list them all down.
    You try and classify them.
    We shall make the necessary corrections for you if you are wrong.
  • Apr 29, 2009, 07:21 AM
    ARTHIV
    Fixed

    Property Tax
    Interest expenses
    Insurance
    Rents (if any)
    Plant Equipment Expenses
    Salaries
    Utility Costs



    Variable

    Raw Material Cost
    Production Costs
    Transportation
    Power/Energy
    Labour-Wages
    Storage charges (E)
  • Apr 29, 2009, 11:49 PM
    morgaine300
    Quote:

    Fixed

    Property Tax
    Interest expenses
    Insurance
    Rents (if any)
    Plant Equipment Expenses
    Salaries
    Utility Costs
    All correct, noting that utilities could be fixed, variable or mixed. For auto manufacturing I'd guess mixed.

    Quote:

    Variable

    Raw Material Cost
    Production Costs
    Transportation
    Power/Energy
    Labour-Wages
    Storage charges (E)
    "Production costs" doesn't specify what it is. All direct material, direct labor and overhead are production costs. Overhead could be all sorts of stuff, including fixed. Leave it out.
    Transportation? Are you meaning freight?
    Power/Energy - that's utilities so ditto above comment.
    Storage charges is in my opinion an incremental fixed cost. If you're trying to stay simple, I wouldn't go there.
    You didn't specify that these had to be product costs. Can you think of some selling/admin that might be variable?

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