ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Variable expenses That’s where budgeting can come in handy. It can help you see what you pay over time in variable expenses and make changes as necessary. Examples of variable expenses include groceries, utilities, gas, dining out, clothing and personal care.

Detailed explanation-2: -° Fixed expenses: Expenses, like bills, that must be paid each month and generally cost the same amount. Some fixed expenses, like a utility bill, may also be variable because the amount changes each month depending on usage.

Detailed explanation-3: -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.

Detailed explanation-4: -A flexible budget is a budget that changes as per the activity level or production of units. The fixed budget is static and doesn’t change at all. On the other hand, a flexible budget is adjustable as per the necessity of the business. A fixed budget is always fixed.