ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Classic examples of variable expenses are clothing, vacations, entertainment, eating out, gifts, facials, and home goods.

Detailed explanation-2: -Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

Detailed explanation-3: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.

Detailed explanation-4: -Some variable expenses, such as going to movies, are planned. Other variable expenses are for things people did not plan for, such as car repairs. expense fixed expense rent mortgage loan interest utility variable expense S 4.10(A) Distinguish between fixed and variable expenses.