For each expense below, choose whether it is fixed or variable: Phone, Groceries, Rent, Credit card, Transportation.
Understand the Problem
The question is asking for the classification of different expenses as either fixed or variable based on the provided data. A fixed expense remains constant regardless of usage, while a variable expense can change based on consumption or usage levels.
Answer
Phone: Variable, Groceries: Variable, Rent: Fixed, Credit card: Variable, Transportation: Variable
Phone: Variable, Groceries: Variable, Rent: Fixed, Credit card: Variable, Transportation: Variable
Answer for screen readers
Phone: Variable, Groceries: Variable, Rent: Fixed, Credit card: Variable, Transportation: Variable
More Information
Fixed expenses are generally consistent, such as rent. Variable expenses like groceries and phone bills can fluctuate based on usage and other factors.
Tips
A common mistake is assuming that expenses like credit card payments are fixed because they are regular; however, their amounts can change monthly.
Sources
- Variable Expenses vs. Fixed Expenses: Examples and How to Budget - nerdwallet.com
- How Fixed And Variable Expenses Differ - Bankrate - bankrate.com
