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.
Fuel is the single biggest variable expense
for aircraft operators.
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.
Therefore, he helps them identify fixed and variable expenses
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.