ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Expenses
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Variable Expenses
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Either A or B
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None of the above
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Detailed explanation-1: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.
Detailed explanation-2: -Examples of variable costs include raw materials, labor, utilities, commission, or distribution costs.
Detailed explanation-3: -Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage. The expenses are incurred over the course of the reporting period, calculated, and accrued for, or payment is rendered.
Detailed explanation-4: -Here are some common examples of variable expenses to account for in your monthly budget: Packaging costs. Utilities, like electricity and water. Credit card and bank fees.