After several months of owning your childcare business, you notice that the budget isn’t the same each month. Which type of expenses is this fluctuation due to?

Question

variable expenses

niche expenses

fixed expenses

scale expenses

Answer 1

The fluctuation in your budget each month is likely due to variable expenses. Variable expenses change based on the level of activity or services provided, such as supplies, staffing costs, utilities, and food, which can vary from month to month. In contrast, fixed expenses remain constant regardless of operational levels, such as rent or salaries for permanent staff.