Periodic ongoing costs that comprise your regular living expenses and to which you are committed Rent or mortgage payments, property taxes, personal taxes, insurance premiums, etc are prime examples Top of Page
Expenditures such as property taxes, license fees, and property insurance not vary directly given changes in the occupancy rate Fixed expenses are on items subtracted from effective gross income to determine the net operating of property
Cash expenditures or outlays which remain the same from month to month They generally take up the largest share of your budget and are not easily or quickly changed Ex Rent (soon to be mortgage), car payment, loan payments, insurance premiums Not all fixed expenses, like insurance, are paid monthly they should however be budgeted for on a monthly basis
Costs or payments that generally do not vary from month to month (for example, a mortgage payment)
are those expenses which are usually fixed in amount and frequency For example, your rent will be the same amount each time and will be due on a regular basis, such as each fortnight Other examples might include loan repayments and insurances
Expenses that are set and difficult to change or minimize Examples include mortgage payments, car payments, utility bills, and income and social security taxes
expenses which stay basically the same from month to month, such as housing and transportation
are those expenses that must be paid each month and do not fluctuate with the sales volume
Those costs that are more or less permanent and do not vary in relation to the property's occupancy or income, such as real estate taxes and insurance for fire, theft and hazards
Cost of doing business which does not change with the volume of business, e g , rent for business premises, insurance payments, heat and light
Those costs which don't vary from one period to the next Generally, these expenses are not affected by the volume of business
- Expenses of the business that remain constant over the short term and do not fluctuate with the sales volume
Costs of owning and operating a property that are not discretionary and, except for occasional increases, do not change from month to month Examples are realty taxes, insurance costs, etc
These costs remain the same regardless of sales volume i e electricity, rent, wages, equipment leases, etc These are not included in COGs for Exchange sales
Fixed expenses are those not directly related to a policy (for example: a premium tax or the payment of a commission associated with the sale of a policy) Includes: advertising, accounting, planning, rent, computer facilities, etc These expenses must be allocated to each "block" of policies sold; the distribution is discretionary and can be critical Some insurers assume too many (or too few) policies will be sold, thereby reducing (or increasing) the fixed expense factor assumed in the pricing of the policy This may lead to lower credits or increased policy charges
Any costs not related directly to the production of your product or service Indirect costs include such things as rent, insurance, basic utilities, and basic phone