Share
Explore BrainMass

Variable, Fixed and Semi Variable Expenses

Please define and explain the following type of expenses and give an example of a business activity from your profession that may change the amount of variable expenses with each definition.
a) Variable expense:
b) Fixed expense:
d) Semi variable or Mixed expense:

Please identify if you would assign each of the following accounts as fixed, variable, or mixed and why.
a) Revenue:
b) Rent:
c) Supplies:
d) Labor positions:
- RN bedside
- Respiratory therapist
- Charge Nurse
- Nurse Manager
- Why is it important to know and understand each classification during the budget process?

Solution Preview

Financial statement
Please define and explain the following type of expenses and give an example of a business activity from your profession that may change the amount of variable expenses with each definition.

Variable expense
A cost to a hospital that is directly related to volume: as volume increases or decreases, the variable expense will follow. An example of a variable expense would be bandages and dressing for a patient.

Fixed expense
A fixed expense is a cost to a hospital that has to be paid even if there are no patients. This fixed expense is predetermined and does not relate to volume of patients. An example of a fixed expense would be building mortgage. With no volume, the mortgage must still be paid, but would signal a change necessary.

Semi variable ...

Solution Summary

Definition of variable, fixed and semi variable expenses. Identification of various costs into these categories.

$2.19