ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Examples of Variable Expenses Some examples of variable costs include: Food costs, such as groceries and dining out. Clothing. Gasoline.

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: -All costs like repairs and maintenance, indirect labor, etc., are variable overhead costs. The overheads costs that are constant when totaled but variable in nature when calculated per unit are known as fixed overheads. Fixed costs tend to decrease per unit with the increase in the production output.

Detailed explanation-4: -The fixed costs of owning a car include insurance, licensing, registration, and taxes, while the variable costs of owning a car include maintenance, repairs, and fuel. When taken together, these expenses create the total cost of vehicle ownership.