What are flexible expenses?

A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside. Flexible expenses should be included in a budget to manage an individual’s overall finances.

What are the 4 types of expenses?

Terms in this set (4)
Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)Intermittent expenses. Discretionary (non-essential) expenses.

In their most basic sense, fixed expenses do not change over time and flexible expenses do. In most individuals’ budgets, monthly mortgage or rent payments are fixed. Flexible expenses may change each month or only occur during certain times of the year.

What is an example of a flexible expense quizlet?

Flexible: expenses that can change from month to month. EX: groceries. Needs: Goods or services that are required such as food, clothing, shelter, health care.

The funds in an FSA can be used to purchase prescriptions, eyeglasses, dependent care, dental appointments, disability treatments, and many other medical expenses. A health savings account is similar to an FSA with both having slightly different processes and contribution limits.

Is commonly considered a flexible expense?

An electric bill is commonly considered a fixed living expense. A common flexible expense associated with apartment renting. Security. A deposite refers to money held to cover possible damage in an apartment.

What are 3 types of expenses?

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

Common expenses might include:
Cost of goods sold for ordinary business operations.Wages, salaries, commissions, other labor (i.e. per-piece contracts)Repairs and maintenance.Rent.Utilities (i.e. heat, A/C, lighting, water, telephone)Insurance rates.Payable interest.Bank charges/fees.

What are four flexible budget categories?

Types of flexible budgets
Basic flexible budget. This type of budget flexes with a company’s expenses that change directly in relation to its revenue. Intermediate flexible budget. An intermediate flexible budget takes into account expenses that go beyond a company’s revenue. Advanced flexible budget.

Are clothes a flexible expense?

Various articles of clothing are examples of flexible expenses. The consumer has the option of purchasing garments that are available at a discount, or buying similar items that are sold at full price.

Is a car payment a flexible expense?

Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. That’s because fixed expenses tend to take up the biggest percentage of your budget.

To compute the value of the flexible budget, multiply the variable cost per unit by the actual production volume. Here, the figure indicates that the variable costs of producing 125,000 should total $162,500 (125,000 units x $1.30).

What are discretionary expenses?

A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.

What are examples of a fixed expense?

Examples of Fixed Expenses
Rent or mortgage payments.Renter’s insurance or homeowner’s insurance.Cell phone service.Internet service.Health, disability or life insurance premiums.Property taxes.Childcare expenses.Student loan or car loan payments.

Is gasoline a fixed expense?

Gas is a non-fixed expense that most working people can’t do without.

There are two types of flexible spending accounts:
A Health Care FSA can cover medical, dental or vision expenses that you would otherwise pay for out of pocket. A Dependent Care FSA— also known as a Dependent Care Assistance Program (DCAP) — covers employment-related expenses for child care.

What are the 2 types of flexible spending accounts quizlet?

The two types of flexible spending accounts are: There are two types of FSAs available: qualified medical expense account and dependent care expense account.

What is a FSA vs HSA?

The most significant difference between flexible spending accounts (FSA) and health savings accounts (HSA) is that an individual controls an HSA and allows contributions to roll over, while FSAs are less flexible and are owned by an employer.

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