ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage.

Detailed explanation-2: -Utilities are a variable cost because the amount of money spent may change depending on the amount of electricity and water used during the billable time period.

Detailed explanation-3: -° Fixed expenses: Expenses, like bills, that must be paid each month and generally cost the same amount. Some fixed expenses, like a utility bill, may also be variable because the amount changes each month depending on usage. ° Variable expenses: Expenses that change in amount from month to month.

Detailed explanation-4: -A good example of variable costs is the operational expenses that increase or decrease based on the business activity. If a business grows, so will its expenses such as utility bills for electricity, gas, or water.

Detailed explanation-5: -Variable Expenses Definition. Variable expenses are the opposite of fixed expenses. A variable expense may recur from month to month. But the amount you pay in any given month could be different from previous payments or ones you’ll make in the future.