Fix expense in the Current SSY Agreement

How to fix expense in Current SSY Agreement online

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How to Fix expense in the Current SSY Agreement

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in this video were going to talk about how to accrue warranty expense in the financial statements so first of all its a good idea to have an understanding what warranty means and basically were talking about some kind of guarantee that a firm is making when you buy the product that there wont be any problems it wont break or if it does theyll actually replace the components that broke or the replace your computer whatever it is that you purchase so its some kind of guarantee about the workmanship so a firm here as you might see if they have a warranty they might have some kind of liability associated with that right because remember a liability is basically an obligation to sacrifice some assets at some point in time so when we have a warranty and we say ok you bought this computer but if it breaks it will replace it well give you another computer well we know theres some kind of obligation here so we have to determine well how do we account for this how do we put this in the

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Where are fixed charges in financial statements?

Fixed charges are found on the income statement as expenses and, sometimes, on the cash flow statement. Certain capitalized expenses are on the balance sheet.

What is meant by variable costs?

Variable costs are expenses that go up and down in line with business activity. The busier you are, the higher they go. Theyre the opposite of fixed costs. Many variable costs, such as inventory and freight, go up in line with the number of sales a business is making.

What is a fixed cost example?

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.

Is fixed cost an expense?

Fixed cost is a business expense that does not change regardless of the activity level of the business. Examples of fixed costs include rent, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.

What is the rule of fixed cost?

updated June 06, 2022 3min read. Fixed costs are business expenses that remain the same each month, no matter how many goods the company produces or services it delivers. These costs stay the same whether revenues increase or decrease.

What is included in fixed charges?

Fixed charges mainly include loans (principal and interest) and lease payments, but the definition of fixed charges may broaden out to include insurance, utilities, and taxes for the purposes of drawing up loan covenants by lenders.

What are fixed costs?

Fixed costs are expenses that stay the same no matter how much activity a business is doing. Theyre the opposite of variable costs. Fixed costs have to be paid even if a business doesnt do any trade for the day. They tend to include regular recurring costs like leases, wages and insurance.

How do you account for fixed costs?

To determine your business total fixed costs: Review your budget or financial statements. Identify all the expense categories that dont change from month to month, such as rent, salaries, insurance premiums, depreciation charges, etc. Add up each of these fixed costs. The result is your companys total fixed costs.

What is meant by a fixed cost?

Share. Fixed costs are costs that do not change when sales or production volumes increase or decrease. This is because they are not directly associated with manufacturing a product or delivering a service. As a result, fixed costs are considered to be indirect costs.

Are taxes a fixed charge?

Fixed charges (or fixed costs) are periodic business expenses independent of the business activity, in contrast to variable costs. Fixed charges include expenses such as principal and interest payments on debt, insurance, taxes, utilities, salaries, and rent and lease payments.

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