Question

Scenario:

Mina has been asked to create a budget for her household. Her father explained that she will need to include the following expense categories: auto insurance, the electricity bill, the house payment, grocery expenses, and discretionary spending.

Which of Mina’s expenses should most likely be ranked as fixed expenses? Check all that apply.

groceries
house payment
discretionary spending
automobile insurance
electricity bill

Answer 1

- house payment (fixed)
- automobile insurance (fixed)

Groceries, discretionary spending, and the electricity bill are typically variable because they change month to month based on use and choices.