20
QuizMultiple Choice

Budget — Test

Question 20 • Financial Math

What is a high-percentage expense in a budget?

Answer
A
an expense that occurs only once a year
B
an expense that exceeds a significant portion of a person's income
C
a flexible cost that can easily be reduced
D
an expense that makes up a small portion of a person's budget

Explanation

A high-percentage expense takes up a significant share of a person’s income or budget. For example, housing costs that consume a large part of monthly income would be a high-percentage expense. An expense that is merely annual or easy to reduce is not defined by the proportion of income it uses.

AI-written and checked against the verified answer.

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