ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Variable Expenses Just as the name says, these are your expenses that will vary month-to-month and are probably the largest spending category. Variable expenses include such things as groceries, gas for your vehicle, utilities, entertainment expenses, and clothing.

Detailed explanation-2: -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-3: -However, some variable costs happen every month. For example, gas, parking fees, groceries, and personal care expenses in any given month could be different from previous payments or ones you’ll make in the future.

Detailed explanation-4: -Operating Costs. Operating costs are also called variable costs because they are only incurred if you operate the vehicle. These costs vary directly with the number of miles or hours driven and include fuel, tires, maintenance, and repairs.