What is most likely the reason variable expenses should be planned after fixed expenses? Fixed expenses are deducted from gross income, and variable expenses come from net income. Variable expenses are a necessary part of fixed expenses but can only be calculated after fixed expenses. Variable expenses are almost always higher than fixed expenses and need a greater budget. Fixed expenses are required and constant, but variable expenses are more flexible.

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Baby Doll

29 November, 06:55

What is most likely the reason variable expenses should be planned after fixed expenses? Fixed expenses are deducted from gross income, and variable expenses come from net income. Variable expenses are a necessary part of fixed expenses but can only be calculated after fixed expenses. Variable expenses are almost always higher than fixed expenses and need a greater budget. Fixed expenses are required and constant, but variable expenses are more flexible.

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Jeffrey Stokes · Answer 1

The correct answer is:

Fixed expenses are required and constant, but variable expenses are more flexible.

Explanation:

In a budget we found two types of expenses, fixed expenses are those paid on a regular basis, they can be monthly expenses, weekly, annually, etc, they are constant and required, for example: mortgage and a phone plan.

Variable expenses are those expenses that are not constant, therefor they are more flexible and not required. Variable expenses are the part of a budget spent on grocery stores, dinning at restaurants or shopping clothes, etc. They are below fixed expenses because they can be cut and they are not the same amount every month.

Ayana Kent · Answer 2

Answer: Fixed expenses are required and constant, but variable expenses are more flexible.