ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-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: -Fixed expenses, such as rent, stay the same from month to month. Variable expenses are ones that can change, such as gas or food.

Detailed explanation-4: -Some common examples of variable expenses include: Groceries. Meals out at restaurants.

Detailed explanation-5: -Discretionary Expenses You need food, but you don’t need it to come from a restaurant. So, groceries are a variable expense, but dining out is a discretionary expense. Examples include: Entertainment.