ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Clothing Shopping
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An Auto Insurance Bill
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An Electric Bill
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An Educational Expense
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Detailed explanation-1: -The correct answer is “C.” Car payments, real estate taxes, and life insurance premiums are also fixed expenses.
Detailed explanation-2: -Answer and Explanation: The correct answer is option d. property taxes. A fixed cost does not change with the production volume within a relevant range for a given period of time.
Detailed explanation-3: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.
Detailed explanation-4: -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-5: -Examples of Fixed Expenses Insurance premiums, such as for car insurance and homeowners insurance. Property taxes. Internet and cable bills. Childcare expenses.