Fixed costs are the overhead costs of a business.
Amortization (charging to expense of the cost of an intangible asset). …
Depreciation. …
Insurance. …
Interest expense. …
Property taxes. …
Rent. …
Salaries. …
Utilities. …
The greater quantity produced, the lower fixed cost per unit. Fixed cost will include an expense debit each month. Fixed costs may, or may not, include a cash credit each month. Fixed costs are added to the General Journal by monthly adjustments.
Continue reading “Accounting for Short Term Assets”