Fixed Vs. Variable Expense Quiz

Essential expenses refer to necessary expenses that are crucial and cannot be avoided. These expenses are mandatory and cannot be considered as optional or discretionary. They are typically required for basic needs such as food, shelter, clothing, healthcare, transportation, and utilities. Therefore, it is accurate to say that essential expenses are must-have expenses and are not optional.

Paying your car's monthly payments is not an example of a non-essential expense because it is necessary to make these payments in order to keep the car.

Variable expenses are costs that can change from month to month and are not fixed. The car payment, student loan, mortgage, and rent are typically fixed expenses that remain the same each month. On the other hand, the gas bill, groceries, and eating out expenses can vary depending on usage and personal choices. Therefore, the correct answer includes the gas bill, groceries, and eating out expenses as they are examples of variable expenses.

The correct answer includes car payment, student loan, mortgage, and rent. These expenses are considered fixed because they are consistent and do not typically fluctuate month to month. Car payments, student loans, and mortgages are regular monthly payments that are necessary for owning a car, paying off educational debt, and owning a home respectively. Rent is also a fixed expense as it is a regular payment for housing.