a) Fixed expenses are expenses that do not change from month to month, and variable expenses are expenses that can fluctuate from month to month. Complete the second column of the chart by determining if each expense is fixed or variable.
b) Choose an example of a fixed expense and an example of a variable expense, and explain why they are classified that way.
Step 2: Calculating Monthly Expenses
The second step to building a family budget is to outline your expenses in greater detail; itemizing fixed and variable expenses. Suppose the table below shows your family's monthly expenses by category.
a) Fixed expenses are expenses that do not change from month to month, and variable expenses are expenses that can fluctuate from month to month. Complete the second column of the chart by determining if each expense is fixed or variable. (10 points, 2 points each)
b) Choose an example of a fixed expense, and an example of a variable expense, and explain why they are classified that way. (4 points)