ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Fixed expenses are required and constant, but variable expenses are more flexible. Why might variable expenses change a great deal at different times of year? Heating and cooling costs might vary considerably.

Detailed explanation-2: -Irregular expenses are those bills that you only pay once per quarter, once per year, or on an as-needed basis. Because you seldom think about them, it’s easy to forget about them until they’re due-and you have to scramble to come up with the cash to pay them.

Detailed explanation-3: -A fixed expense is a cost that’s typically constant. Fixed expenses are paid at regular intervals-often monthly. Some fixed expenses are what are known as “periodic fixed expenses.” These expenses are fixed and regular, but don’t occur monthly-they may occur quarterly or annually instead, for example.

Detailed explanation-4: -What is the simplest change that can be made to the budget to produce more savings next month? Decrease food expenses. From what part of income should someone take savings? An expense that is constant each month is called a expense.