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Fixed versus Flexible/Variable Expenses

Evaluate how fixed and variable costs can differ based upon the industry. Which would you prefer to have more of in terms of expenses (fixed or flexible)? Provide rationale for your choice. Your initial post should be at least 300 words.

Resources

Readings

1.Textbook:
Dropkin, M., Halpin, J., & LaTouche, B. (2007). The budget-building book for nonprofits (2nd ed.). Jossey-Bass.
Chapter 14: Major Components of Operating Budgets

2. Article:
Chevarley, F., Owens, P.L., Zodet, M.W., Simpson, L., et al. (2006). Health care for children and youth in the United States: Annual report on patterns of coverage, utilization, quality, and expenditures by a county level of urban influence. Ambulatory Pediatrics, 6(5), 241-64.

3. Videos
McCarthy, J., [goldstarjimmccarthy]. (2010, September 1). Difference Between Fixed and Variable Costs – Quick Draw with Jim McCarthy, Goldstar CEO [Video File]. Retrieved from https://youtu.be/wBBfA9q8FSQ (Links to an external site.)

BPMSG, [BPMSG]. (2010, February 23). 06 Operating Expenses Fixed and Variable (Business Performance Management) [Video File]. Retrieved from https://youtu.be/Xc6F5rMCM40 

 

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