Your monthly rent payment is an example of a variable expense.

A. True

B. False

Answer

Your monthly rent payment is classified as a fixed expense, not a variable expense.

Explanation:

1. Definition of Fixed Expenses:

2. Definition of Variable Expenses:

Examples:

Importance of Distinction:

Understanding the difference between fixed and variable expenses is vital for effective budgeting. Fixed expenses like rent must be consistently accounted for in your budget because they occupy a stable portion of your financial obligations. Variable expenses can be adjusted based on your financial situation, allowing for more flexibility.

In summary, since your rent does not change from month to month, the correct answer to the original question is

B. False.