Fixed and Variable Expenses

Front

What are fixed expenses?

Back

Expenses that stay the same from week to week or month to month.

Front

What is an example of a fixed expense?

Back

A loan payment.

Front

What are variable expenses?

Back

Irregular expenses that change from week to week or month to month.

Front

What is an example of a variable expense?

Back

The cost of food.

Front

Is rent for a shop a fixed or variable expense?

Back

Fixed expense.

Front

How do fixed expenses affect budgeting?

Back

They provide a predictable cost that must be covered each month.

Front

How do variable expenses affect budgeting?

Back

They can fluctuate, making budgeting more challenging.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant, while variable expenses change.

Front

Can a subscription service be considered a fixed expense?

Back

Yes, if the payment amount is consistent each month.

Front

What is a common characteristic of variable expenses?

Back

They can vary in amount and frequency.