Final answer:
Under Fixed expenses, items like a mortgage should be listed since these costs do not vary with production levels or consumption, while variable expenses like clothing bills fluctuate based on personal consumption habits.
Step-by-step explanation:
When determining what to fill in under Fixed expenses, it's important to understand that fixed expenses are costs that do not change regardless of the level of production or business activity. these can include the rent on a factory or retail space, mortgage payments, or the cost of machinery. variable expenses, on the other hand, can fluctuate based on how much you produce or consume, such as grocery bills or hiring temporary labor. Therefore, the correct answer to the question is:
d. Fixed expenses: Mortgage, Variable expenses: Clothing
A mortgage is a fixed expense because it is a regular, set payment that does not change with the level of output or economic activity. clothing, however, can be considered a variable expense since the amount spent on it can vary from month to month.