Fixed Vs. Variable Expense Quiz
This quiz, titled 'Fixed vs. Variable Expense Quiz', assesses understanding of different types of expenses. It covers definitions, examples, and categorization of fixed and variable expenses, essential for effective personal financial management.
- 1.
What does variable expense mean?
- 2.
What does fixed expense mean?
- 3.
Select all of the fixed expenses...
- A.
Car payment
- B.
Gas Bill
- C.
Student Loan
- D.
Mortgage
- E.
Rent
- F.
Groceries
- G.
Eating out
Correct Answer(s)
A. Car payment
C. Student Loan
D. Mortgage
E. RentExplanation
The correct answer includes car payment, student loan, mortgage, and rent. These expenses are considered fixed because they are consistent and do not typically fluctuate month to month. Car payments, student loans, and mortgages are regular monthly payments that are necessary for owning a car, paying off educational debt, and owning a home respectively. Rent is also a fixed expense as it is a regular payment for housing.Rate this question:
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- 4.
Select all of the variable expenses...
- A.
Car payment
- B.
Gas Bill
- C.
Student Loan
- D.
Mortgage
- E.
Rent
- F.
Groceries
- G.
Eating out
Correct Answer(s)
B. Gas Bill
F. Groceries
G. Eating outExplanation
Variable expenses are costs that can change from month to month and are not fixed. The car payment, student loan, mortgage, and rent are typically fixed expenses that remain the same each month. On the other hand, the gas bill, groceries, and eating out expenses can vary depending on usage and personal choices. Therefore, the correct answer includes the gas bill, groceries, and eating out expenses as they are examples of variable expenses.Rate this question:
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- 5.
Essential expenses are MUST-HAVE expenses which are not optional.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Essential expenses refer to necessary expenses that are crucial and cannot be avoided. These expenses are mandatory and cannot be considered as optional or discretionary. They are typically required for basic needs such as food, shelter, clothing, healthcare, transportation, and utilities. Therefore, it is accurate to say that essential expenses are must-have expenses and are not optional.Rate this question:
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- 6.
Paying your car's monthly payments is an example of NON-ESSENTIAL expense.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Paying your car's monthly payments is not an example of a non-essential expense because it is necessary to make these payments in order to keep the car.Rate this question:
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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Feb 25, 2015Quiz Created by
Bulut