Which statement best describes variable expenses?

Which statement best describes variable expenses?

• A. A cost that changes in amount from week to week or month to month.
• B. Costs that occur quarterly.
• C. A fixed mortgage payment.
• D. Insurance premiums billed annually.

Answer: (A)

Variable expenses are costs that change in amount based on how much you use or buy. This means they can rise or fall from one period to the next, like groceries, utility bills, or fuel, which depend on your usage. The description that a cost changes in amount from week to week or month to month captures this idea most directly. In contrast, a fixed mortgage payment stays the same each month, insurance premiums billed annually are paid once a year and don’t swing with usage in the short term, and costs that occur quarterly relate to timing rather than how much you spend.

Variable expenses are costs that change in amount based on how much you use or buy. This means they can rise or fall from one period to the next, like groceries, utility bills, or fuel, which depend on your usage. The description that a cost changes in amount from week to week or month to month captures this idea most directly. In contrast, a fixed mortgage payment stays the same each month, insurance premiums billed annually are paid once a year and don’t swing with usage in the short term, and costs that occur quarterly relate to timing rather than how much you spend.