Question

Which expense is a variable expense?

1) rent
2) groceries
3) car payment
4) gym membership

Answer 1

Option 2 . Groceries . Groceries are a variable expense because the amount spent on groceries can change each month, unlike the fixed nature of expenses like rent, car payments, and gym memberships.

Step-by-step explanation:

The question asks which expense is a variable expense.

Variable expenses are those which can change based on your usage or consumption levels, unlike fixed costs, which remain the same regardless of production level or usage

.

Rent, car payments, and gym memberships are typically fixed expenses, as they do not fluctuate from month to month.

However, groceries are a variable expense because the amount you spend can vary each month depending on what you choose to purchase.

Therefore , the correct option is 2. groceries.

Answer 2

Groceries qualify as a variable expense. Thus, the correct answer is 2) groceries.

Step-by-step explanation:

Variable expenses are costs that fluctuate and are generally dependent on usage or consumption. Groceries fall under this category as the amount spent can vary from month to month based on factors like meal planning, dietary changes, or the number of household members. The expenditure on groceries is flexible and can be adjusted based on individual preferences or needs.

In contrast, fixed expenses such as rent and car payments remain constant and do not typically change in the short term. These expenses are usually set amounts that are paid regularly, providing a stable baseline in the monthly budget. However, a gym membership, although it may seem variable based on usage, is often considered a fixed expense if it requires a consistent monthly payment regardless of utilization.

Understanding the distinction between variable and fixed expenses is crucial for budgeting and financial planning. Variable expenses allow more flexibility in budget adjustments compared to fixed expenses, which remain consistent regardless of fluctuations in usage or consumption.

Groceries, due to their varying nature in cost based on consumption patterns, are considered a prime example of a variable expense in household budgeting.

Thus, the correct answer is 2) groceries.