Question

Sort each expense as either a fixed expense or a variable expense.

monthly rent

ixed Expense

Variable Expense

car payment

movies

savings for new guitar

snacks

video games

Answer 1

fixed - monthly rent, car payment, savings for new guitar

variable - movies, video games, snacks

Explanation:

Fixed costs are costs that do not vary with output.

the amount of rent paid is fixed.

Variable costs are costs that vary with production

the amount paid at the movies depend on the number of movies watched