Unit 1 OCS FM Review Lesson 1 and 2

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What is a Fixed Expense?

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A fixed expense is a cost that does not change regardless of the level of goods or services produced. Examples include rent and insurance.

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What is a Variable Expense?

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A variable expense is a cost that varies depending on the level of goods or services produced. Examples include utility bills and groceries.

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What is a Periodic Expense?

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A periodic expense is a cost that occurs at irregular intervals, such as emergency room visits or annual subscriptions.

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How do you calculate monthly savings for a goal?

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To calculate monthly savings for a goal, divide the total amount needed by the number of months until the goal is reached.

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What is a Budget?

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A budget is a financial plan that outlines expected income and expenses over a specific period.

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Can a budget be adjusted after it is written?

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Yes, a budget can be adjusted as circumstances change.

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What is the formula to calculate savings needed per month?

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Savings needed per month = Total amount needed / Number of months.

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What is an example of a Fixed Expense?

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

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What is an example of a Variable Expense?

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

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What is an example of a Periodic Expense?

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An example of a periodic expense is an annual car insurance premium.