ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Their monthly cost of eating out at restaurants
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Their monthly rent payment
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The monthly payment on their car loan
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Their monthly payment for health insurance
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Detailed explanation-1: -An example of variable expenses is the monthly expenses for eating out in restaurants. This is because there is no defined number of times an individual should eat in a restaurant. Thus, the cost of eating in restaurants varies every month.
Detailed explanation-2: -Common variable expenses include: Groceries and dining out. Clothing. Personal care.
Detailed explanation-3: -Variable costs include food, hourly wages, and utilities. These costs are harder to predict when opening a restaurant because they vary according to output.
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: -Variable costs are costs that change as the volume changes. Examples of variable costs are raw materials, piece-rate labor, production supplies, commissions, delivery costs, packaging supplies, and credit card fees.