12
QuizMultiple Choice

3.11 Budgeting

Question 12 • Personal Finance - EL3403

Why might variable expenses change a great deal at different times of year?

Answer
A
Heating and cooling costs might vary considerably.
B
Income taxes and withholdings may increase or decrease.
C
Car loan payments become higher in certain seasons.
D
Discretionary spending may rise when fixed expenses rise.

Explanation

Variable expenses can change as the conditions that affect them change. Heating bills may rise in cold months, while cooling costs may rise in hot months, so these expenses can differ a great deal from season to season. This makes A, “Heating and cooling costs might vary considerably,” the best answer.

AI-written and checked against the verified answer.

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