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QuizMultiple Choice

Budgeting

Question 1 • Personal Finance - EL3403

What type of expense is an example of the cost to drive to and from work?

Answer
A
a variable expense.
B
a fixed expense.
C
a short-term expense.
D
a discretionary expense.

Explanation

The cost of driving to and from work usually changes with how much you drive and the price of fuel. That makes it a variable expense, rather than a fixed expense that stays about the same each period. The correct choice is “a variable expense.”

AI-written and checked against the verified answer.

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