Table of Contents
What type of expense are groceries?
Discretionary Expenses You need food, but you don’t need it to come from a restaurant. So, groceries are a variable expense, but dining out is a discretionary expense. Examples include: Entertainment.
What are 5 fixed expenses?
The definition of fixed expenses is “any expense that does not change from period to period,” such as mortgage or rent payments, utility bills, and loan payments. Lease / car loan payment. Vehicle insurance (if paying monthly) Life / Disability / Extended health (or other) insurance.
What are fixed and variable expenses?
Part of creating a budget is distinguishing between your fixed and variable expenses: Fixed expenses: These are costs that largely remain constant, such as your monthly rent. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.
Is clothing a fixed or variable expense?
What Are Variable Costs? Variable costs are unfixed, discretionary costs that include gas, clothing, entertainment, pet supplies and dining out at restaurants. Your electric bill is a variable expense, too, unless you’ve arranged to have even billing, where the payment doesn’t change from month to month.
Is rent a fixed or variable expense?
The most common examples of fixed costs include lease and rent payments, utilities, insurance, certain salaries, and interest payments.
What are examples of fixed expenses?
Examples of Fixed Expenses
- Rent or mortgage payments.
- Renter’s insurance or homeowner’s insurance.
- Cell phone service.
- Internet service.
- Health, disability or life insurance premiums.
- Property taxes.
- Childcare expenses.
- Student loan or car loan payments.
Is electricity a fixed expense?
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. Some utilities, such as electricity, may increase when production goes up. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.