variable expenses


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Variable Cost

A cost to a person or business that varies over time according to a number of factors. For example, a dental office must buy dental supplies, which usually cost about the same. This is a fixed cost. On the other hand, the dental office must also pay the electric and gas and water bills, which may fluctuate considerably. This is a variable cost.

variable expenses

Property operating expenses that increase and decrease in relatively direct proportion to changes in occupancy. It is important to differentiate between fixed expenses and variable expenses because the fixed expenses must be met every month,no matter what the occupancies.In preparing a pro forma analysis for a new project,one will usually calculate fixed expenses starting with month 1 and continuing unchanged until perhaps another employee must be added to the payroll.Variable expenses, however, are always calculated as dependent on lease-up and tied to each month's occupancy figures if the pro forma is a spreadsheet.

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Retailers have long done what is possible to reduce variable expenses to the bare minimum - marketing and advertising is probably the largest of these costs.
Expense ratios can be used to compute the variable expenses as a percentage of sales.
In addition, the ability to standardize our planning model across the organization and make changes to variable expenses and have that automatically roll up was an important requirement.
The price of oil shale electricity is hard to be reduced, because variable expenses exceed the anticipated long-term market price, and millions of EUROs have to be expended to remove slag heaps and clean the groundwater and air.
So there comes a time, especially with volume increasing, when it makes more sense from a profit management standpoint to invest in permanent resources and transform the variable expenses into a fixed cost.
Those who have not yet thrown in the towel generally decide to address their challenge in one of three ways: Do nothing, discount goods and services and or trim variable expenses or restructure their fixed expenses.
The fact that we will be able to proactively budget for traditionally variable expenses and count on optimal repair turnaround times under Bombardier's SmartParts program is another significant advantage," said Neil Mills, Chief Executive Officer, SpiceJet.
It can be difficult to predict accurately some variable expenses such as entertainment.
Start with fixed and variable expenses and then ask the client about expected large, onetime expenses (e.
Then categorize ongoing monthly expenses into fixed expenses (like rent), variable expenses that are "must-buys" (food, gas, medicine, books, supplies), savings and spending money.

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