Question

In this section, you’ll consider making a budget to keep track of your income and spending.

After purchasing gas, you were surprised to get a low balance notice from your bank. When you checked your account online, you discovered that the auto-debit for your cell phone occurred the day before. Your bank account balance is usually pretty low, and you feel anxious waiting for your next paycheck.

You decide to track your income and spending to identify where your money is going. You notice you’ve spent more on gas this month than you expected. Gas prices are high now, and you’ve been driving to visit your friends after work.

What type of expense is gas?
Question 4 options:

Luxury


Fixed


Variable


Periodic

Answer 1

Variable — gas is a variable expense because the amount you spend changes based on usage and price.