Fixed and Variable Expenses

Front

What are fixed expenses?

Back

Fixed expenses are costs that do not change from month to month, such as rent or loan payments.

Front

What are variable expenses?

Back

Variable expenses are costs that can change from month to month, such as groceries or entertainment.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a monthly car payment.

Front

Give an example of a variable expense.

Back

An example of a variable expense is the cost of food.

Front

How do you calculate total fixed expenses?

Back

Total fixed expenses are calculated by adding all fixed costs together.

Front

How do you calculate total variable expenses?

Back

Total variable expenses are calculated by adding all variable costs together.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain constant, while variable expenses fluctuate based on usage or consumption.

Front

If Mario pays $259 a month for 8 months, what is the total amount he paid in fixed expenses for those months?

Back

$2,072 (8 months x $259/month).

Front

What is an example of a business fixed expense?

Back

Rent for a shop is an example of a business fixed expense.

Front

If Lexi takes 3 courses at $835 each, what is her total fixed expense for courses?

Back

$2,505 (3 courses x $835/course).