Flexible expenses are any non-essential cost that can be changed, reduced, or eliminated to help balance your budget. Flexible expense examples include groceries, dining out, entertainment, and even utilities.
What is an example of a flexible expense quizlet?
Flexible: expenses that can change from month to month. EX: groceries. Needs: Goods or services that are required such as food, clothing, shelter, health care.
Terms in this set (4)
Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)Intermittent expenses. Discretionary (non-essential) expenses.
What is a flexible expense with apartment renting?
In addition, they’ll learn budgeting strategies for both flexible expenses (variable costs that change depending on level of consumption, such as entertainment, restaurants, and vacations), and fixed expenses (those that need to be paid every month, such as rent and apartment insurance).
Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. That’s because fixed expenses tend to take up the biggest percentage of your budget.
Is rent a flexible expense?
In their most basic sense, fixed expenses do not change over time and flexible expenses do. In most individuals’ budgets, monthly mortgage or rent payments are fixed. Flexible expenses may change each month or only occur during certain times of the year.
Which two expenses are considered variable non discretionary expenses?
Variable, nondiscretionary expenses are as follows: Food. Utilities.
Show Me the Money
Food.Utilities.Entertainment.Vacations.
A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.
How do flexible expenses differ from fixed expenses apex?
Why are fixed expenses difficult to reduce? How do flexible expenses differ from fixed expenses? Flexible expenses vary over time. Once all unnecessary expenses have been removed from your budget, what can you do if your expenses still exceed your income?
What are four flexible budget categories?
Types of flexible budgets
Basic flexible budget. This type of budget flexes with a company’s expenses that change directly in relation to its revenue. Intermediate flexible budget. An intermediate flexible budget takes into account expenses that go beyond a company’s revenue. Advanced flexible budget.
What are considered expenses?
What is an Expense? An expense is the cost of operations that a company incurs to generate revenue. As the popular saying goes, “it costs money to make money.” Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation.
There are three major types of expenses we all pay: fixed, variable, and periodic.
Is an electric bill commonly considered a fixed living expense?
An electric bill is commonly considered a fixed living expense. A security deposit covers the rent for the first month when moving into an apartment. A roommate may reduce the financial burden of renting an apartment. Saving money for a down payment to buy a house is usually considered a short-term goal.
Is $5000 enough to move out?
Ideally, you want to save as much as possible before moving out. At the very least, you’ll want three months rent and expenses, while a more reasonable safety net is six months. Depending on where you live, that three-month safety net could be anywhere from $3,200 to over $5,000.
What’s the 50 30 20 budget rule?
The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly after-tax income into three spending categories: 50% for needs, 30% for wants and 20% for savings or paying off debt.
Flexible Expenses
Categories include food and groceries, out-of-pocket medical expenses, clothing and personal expenses such as hair care, personal hygiene products, allowances and alcohol.
How do you calculate flexible expenses?
To compute the value of the flexible budget, multiply the variable cost per unit by the actual production volume. Here, the figure indicates that the variable costs of producing 125,000 should total $162,500 (125,000 units x $1.30).
What is the flexible cost?
Flexible costs, also called discretionary costs, are costs that are not committed to by the company. For some costs, such as rent or loan payments, a business is contractually obligated to make periodic payments and will continue to incur costs until some point in the future. These costs are known as flexible costs.
