What Is An Example Of Flexible Expense?

Is food a fixed expense?

Fixed expenses are your weekly, monthly, or annual bills that don’t fluctuate.

These include things like mortgage or rent payments, car payments, insurance premiums, utility bills, and the average amount you spend on groceries..

Is rent a fixed debt?

Examples of fixed costs include rental lease payments, salaries, insurance, property taxes, interest expenses, depreciation, and potentially some utilities.

What expense is rent?

Rent expense is a type of fixed operating cost or an absorption cost for a business, as opposed to a variable expense. Rental expenses are often subject to a one- or two-year contract between the lessor and lessee, with options to renew.

What are three types of flexible expenses?

There are three major types of expenses we all pay: fixed, variable, and periodic.

What is an example of a discretionary expense?

Discretionary expenses are often defined as nonessential spending or, in other words, wants rather than needs. This means a business or household is still able to run even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.

What are the 4 types of expenses?

You might think expenses are expenses. If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).

What is a fixed expense example?

Fixed Expenses – Definition, Examples and Lists The definition of fixed expenses is “any expense that does not change from period to period,” such as mortgage or rent payments, utility bills, and loan payments. … Mortgage(s) Rent. Property taxes (if paying monthly)

Is Netflix a fixed expense?

Netflix’s fixed costs are in the ~12% range (which is low) and, yet, they use this metric to manage their content expenses (which is a variable cost).

How do you classify expenses?

Types of ExpensesOperating. Cost of Goods Sold (COGS) It includes material cost, direct. Marketing, advertising, and promotion. Salaries, benefits, and wages. Selling, general, and administrative (SG&A) It includes expenses such as rent, advertising, marketing. … Non-operating. Interest. Taxes. Impairment charges.

Is rent a discretionary expense?

While rent, mortgage payments, and groceries are necessary, discretionary expenses are those you incur voluntarily such as dining out or cable television. Your discretionary spending budget is only as big as the income you have available to fund it.

What are flexible expenses?

A flexible expense is a discretionary purchase that can be altered or eliminated altogether without a significant downside. Economists often use the term consumer discretionary spending to describe flexible expenses.

Is Rent a flexible expense?

What are Flexible Expenses? Fixed expenses and flexible expenses should be part of every budget. Yet some people only include their fixed expenses — rent or mortgage payment, car payment and cable TV bill, in other words, costs that typically remain the same from month-to-month — when preparing a budget.

Is Internet a fixed expense?

Some examples of fixed costs include: Rent. Telephone and internet costs.

Is cable and internet a fixed expense?

In the area for fixed expenses, you’ll need to list all expenses you have that are the same every month. For example, if your car payment is $350, you can list that amount as a fixed expense. Here are some other fixed expenses: … Service payments (cable, Internet, cell phone, satellite radio, etc.)

What are 5 expenses that are flexible?

Flexible expense examples include groceries, dining out, entertainment, and even utilities….Here are some examples of variable essential costs:Groceries.Cell Phone Plans.Internet Services.Transportation Costs (gas, level of insurance coverage, etc.)Utilities.

What is a fixed monthly expense?

What Are Fixed Expenses? Fixed expenses are consistent and expected bills you pay each month, such as a mortgage or rent, a cellphone bill and a student loan payment. Car insurance, home insurance and life insurance are also fixed payments, along with your monthly electric and water bills.

What are expenses examples?

Examples of ExpensesCost of goods sold.Sales commissions expense.Delivery expense.Rent expense.Salaries expense.Advertising expense.

What are optional expenses?

“Optional” expenses are those you CAN live without. These are also expenses that can be postponed when expenses exceed income or when your budgeting goal allows for it. Examples are books, cable, the internet, restaurant meals and movies.