ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For example, entertainment and clothing are flexible expenses. Even necessary expenses, such as groceries, can be considered flexible because the consumer adjusts the amount spent. A company often makes use of flexible expenses to scale costs based on business needs.

Detailed explanation-2: -Rent, room and board if you live on campus, and car payments are fixed expenses; flexible – these amounts change from month to month. Utility bills, food (including that latte you grab on the way to class), and entertainment are flexible expenses.

Detailed explanation-3: -Categories of Expenses in a Flexible Budget Rent, lease payments, insurance, interest payments, website fees, certain salaries.

Detailed explanation-4: -Food and clothing are major flexible expenses in family budgets. They are typically not the largest expense, compared to fixed expenses like housing (rent or mortgage payments) or transportation (e.g., car loan payments), but people still spend a lot of money in these categories.

Detailed explanation-5: -Flexible expenses: These are the necessary expenses that can vary each month, such as your utilities and weekly grocery bill. You can lower these expenses by changing your habits.