Question

Pieta has found that his annual budget does not balance. Which of the following could he most easily adjust first? Fixed expenses Gross income Net income Variable expenses

Answer 1

Variable expenses are the most easily adjusted. You can't adjust fixed expenses much at all and you can't adjust net or gross income without switching jobs.

Answer 2

Variable expenses

Step-by-step explanation:

Generally you cannot decide your income (net or gross), you can work more hours to increase it or try to get a higher paying job, but it depends on variables that we cannot control. Otherwise everyone would choose to earn $1 million per hour or even more.

Another thing that you cannot easily control are fixed expenses, for example, you pay a fixed rent, in order to change your rent you would have to find a cheaper place.

Variables expenses are probably the only item that you can change relatively easy, for example, you can choose to buy less clothes or spend less in entertainment, etc.