ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Variable expenses
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Fixed expense
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Gross expenses
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Net expenses
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Detailed explanation-1: -Variable costs are any expenses that change based on how much a company produces and sells. This means that variable costs increase as production rises and decrease as production falls. Some of the most common types of variable costs include labor, utility expenses, commissions, and raw materials.
Detailed explanation-2: -Examples of Variable Expenses Some examples of variable costs include: Food costs, such as groceries and dining out. Clothing.
Detailed explanation-3: -Utilities are a variable cost because the amount of money spent may change depending on the amount of electricity and water used during the billable time period.
Detailed explanation-4: -What Is a Variable Cost? A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume-they rise as production increases and fall as production decreases.