Flexible expense examples include groceries, dining out, entertainment, and even utilities. Learn how you can master your personal finances by cutting back on these expenses and putting more money where it matters.
What are flexible expenses?
A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside. These are non-essential expenses that stand in contrast to fixed expenses. Flexible expenses should be included in a budget to manage an individual’s overall finances.
What is the difference between fixed expense and flexible expense give two examples of each?
In their most basic sense, fixed expenses do not change over time and flexible expenses do. In most individuals’ budgets, monthly mortgage or rent payments are fixed. … Flexible expenses may change each month or only occur during certain times of the year.
What is an example of a flexible expense quizlet?
Flexible: expenses that can change from month to month. EX: groceries. Needs: Goods or services that are required such as food, clothing, shelter, health care.What are fixed expenses and flexible 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.
What are expenses examples?
- Cost of goods sold.
- Sales commissions expense.
- Delivery expense.
- Rent expense.
- Salaries expense.
- Advertising expense.
What are the 3 types of expenses?
Fixed expenses, variable expenses, and irregular expenses are the three categories that make up your budget, and are vitally important when learning to manage your money properly. When you’ve committed to following a budget, you must know how to put your plan into action.
Which of the following is an example of a variable expense?
Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, and commissions, and certain utilities (for example, electricity or gas that increases with production capacity).What is a flexible expense quizlet?
Flexible expenses. Def: amounts that you can choose to spend or not to spend. Luxury goods. Def: goods that have special qualities that make them more expensive than alternative goods.
Which of the following is an example of a fixed expense?Common examples of fixed costs include rental lease or mortgage payments, salaries, insurance payments, property taxes, interest expenses, depreciation, and some utilities.
Article first time published onIs a car payment a flexible expense?
Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. … That’s because fixed expenses tend to take up the biggest percentage of your budget.
What are 5 examples of variable expenses?
- Direct materials. The most purely variable cost of all, these are the raw materials that go into a product.
- Piece rate labor. …
- Production supplies. …
- Billable staff wages. …
- Commissions. …
- Credit card fees. …
- Freight out.
Which is an example of a fixed expense quizlet?
A fixed variable expense is a cost that you pay every month, but the amount can change from month to month. (A good example of this is your electric bill. Your electric bill will be higher in the winter if you live in a colder climate and lower in the summer months.
Is gas a fixed expense?
Utilities– the cost of electricity, gas, phones, trash and sewer services, etc. … However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output.
Is advertising a fixed expense?
Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. They include such expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.
What are the types of expenses?
- Operating. Cost of Goods Sold (COGS) It includes material cost, direct. Marketing, advertising, and promotion. Salaries, benefits, and wages. Selling, general, and administrative (SG&A) It includes expenses such as rent, advertising, marketing. …
- Non-operating. Interest. Taxes. Impairment charges.
What are examples of monthly expenses?
- Housing. Your housing expenses are likely your single-largest budget item. …
- Food. Your monthly food expense includes everything that you spend on eating. …
- Transportation. …
- Childcare and pet care. …
- Cell phone. …
- Health insurance. …
- Debt. …
- Savings.
What are the two main categories of expenses?
Key Takeaways There are two main categories of business expenses in accounting: operating expenses and non-operating expenses.
What are 10 examples of expenses?
- Cost of goods sold for ordinary business operations.
- Wages, salaries, commissions, other labor (i.e. per-piece contracts)
- Repairs and maintenance.
- Rent.
- Utilities (i.e. heat, A/C, lighting, water, telephone)
- Insurance rates.
- Payable interest.
- Bank charges/fees.
What are 10 types of expenses?
- 1) Wages and salaries paid to workers and employees. A big sum of money is spent to pay employees as per the payroll system. …
- 2) Location cost. …
- 3) Accounting and Banks expenses. …
- 4) Education and training expenses. …
- 5) Office expenses. …
- 6) Office supplies. …
- 7) Business Insurance Expenses. …
- 8) Network and communication expenses.
What are examples of business expenses?
- Rent or mortgage payments.
- Office equipment.
- Payroll costs (e.g., wages, benefits, and taxes)
- Advertising and marketing.
- Utilities.
- Small business insurance.
- Depreciation.
- Taxes.
Which of the following is an example of irregular income?
An individual may receive income on an irregular or sporadic basis. Examples of irregular income include day labor, on-call work (such as substitute teaching), craft sales, and receipt of spousal support. It may also include payments such as winnings from bingo.
What is Joe's gross pay?
Gross pay = $960.00 x .062 = $59.52. Joe Works the same amount of hours each month joe worked 80 hours in the last pay period and he earns $12 per hour. Caculate Joe’s Medicare deduction , which is 1.45% of his gross pay. Gross pay= $960.00 x 0145 = $13.92.
What area of expenses is best to target?
- Food: 10-15%
- Insurance, such as life, medical, home or auto: 10-25%
- Transportation or auto services: 10-15%
- Savings: 15-20%
- Entertainment and leisure: 5-10%
- Health: 5-10%
- Clothing: 5%
- Personal expenses: 5-10%
What is a variable with example?
A variable is any characteristics, number, or quantity that can be measured or counted. A variable may also be called a data item. Age, sex, business income and expenses, country of birth, capital expenditure, class grades, eye colour and vehicle type are examples of variables.
Which of these is an example of a variable expense quizlet?
Salaries and utilities are examples of variable expenses. Shipping and handling charges are examples of variable expenses.
What are examples of mixed costs?
Utilities including electricity, water and natural gas are usually mixed costs. You are charged a fixed rate for using a base amount and then pay an additional variable charge for any usage over the base amount. For example, your water company charges you a fixed $75 charge for using up to 500 gallons of water.
What are some examples of fixed and variable expenses?
Examples of fixed costs are rent, insurance, depreciation, salaries, and utilities. Examples of variable expenses are direct materials, sales commissions, and credit card fees.
What is the definition of a fixed expense give at least two examples?
Fixed expenses are those expenses that stay the same regardless of your sales or business activity and can have a significant impact on your cash flow and budget. Expenses like rent or mortgage, insurance, salaries, and some utilities fall into the category of fixed expenses.
Is Internet a fixed expense?
Fixed costs are predetermined expenses that remain the same throughout a specific period. … Some examples of fixed costs include: Rent. Telephone and internet costs.
Is housing a fixed expense?
Fixed expenses can include essential expenses, such as those needed to maintain a basic standard of living each month. Some of the most common fixed expense samples include: Rent or mortgage payments. Renter’s insurance or homeowner’s insurance.
