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: -Businesses use fixed costs for expenses that remain constant for a specific period, such as rent or loan payments, while variable costs are for expenses that change constantly, such as taxes, labor, and operational expenses.

Detailed explanation-3: -What Are Fixed Expenses? Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.

Detailed explanation-4: -Fixed expenses: These are the necessary expenses that remain the same each month, including your rent, car payment, and insurance.

Detailed explanation-5: -Which of the following statement is TRUE about variable expenses? The amount you spend on variable expenses do not change during certain months and do change during other months.