Fixed and Variable Expenses

Sandra pays her water bill on the 2nd day of each month. What kind of expense best represents Sandra’s water bill?

• Variable expense, because her water bill will most likely be different each month.

• Variable expense, because she pays her water bill every month and not every week.

• Fixed expense, because her water bill will be the same every month.

• Fixed expense, because she pays her water bill on the same day every month.

Which of the following does not represent a variable expense?

• Gifts to friends

• Student loans

• Shopping

• Electric bill

Which of the following is an example of a fixed expense?

• Emma donates $30 to a homeless

  shelter.

• Emma spends $18.50 on a movie ticket

  and snacks at the movie theater.

• Emma pays a gardener $45 each week

  to mow her lawn and water her plants.

• Emma sells a piece of furniture for

  $100.

Which of the following is an example of a variable expense?

• Carlos pays $105 per month on car

  insurance.

• Carlos purchased a plane ticket to visit his grandma for spring break for $285.

• A phone company charges Carlos $110 every month for his cell phone service.

• Carlos pays $975 per month for rent.

Amber pays $42.50 every month for a gym membership. What kind of expense represents monthly payments for a gym membership?

• Fixed expense

• Variable expense

• Profit

• Income

Gerald borrowed money from a bank to buy a car. He has to make car payments to pay back the money he borrowed. What kind of expense most likely represents Gerald’s car payments?

• Fixed expense, because the car will be paid for after the first month.

• Variable expense, because the payment is not due every month.

• Fixed expense, because the amount Gerald will have to pay will be the same every month.

• Variable expense, because the amount Gerald will have to pay will change every month.

Which of the following does NOT represent a fixed expense?

• Car payment

• Cable bill

• Rent

• Gas

Which of the following represents a variable expense?

• Car lease payment

• A subscription to a magazine

• Internet

• Shopping

Which of the following represents a fixed expense?

• Movie ticket

• Eating at a restaurant

• Donating to charity

• Health insurance

Which of the following is an example of a fixed expense?

• Roman goes to the movies with his friends on Friday.

• Roman bought a pair of shoes for $75.

• Roman pays $15 every month for an online movie subscription.

• Roman bought his mom a birthday present for $25.