ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Buying gas for your car each month is a variable expense, as are car repairs and maintenance. Grocery shopping is also a variable expense. Your utility bills may also be variable expenses because they may change from month to month.

Detailed explanation-2: -Examples of Variable Expenses Some examples of variable costs include: Food costs, such as groceries and dining out. Clothing. Gasoline.

Detailed explanation-3: -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-4: -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.

Detailed explanation-5: -Cost of Goods Sold. Operating Expenses. Financial Expenses. Extraordinary Expenses. Non-Operating Expenses.