Expenses can be variable or fixed”. Through examples show how an … - Vidyadip

Question

Expenses can be variable or fixed”. Through examples show how an expense can fall in both the categories.

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Answer

Telephone bill is generally a fixed expense, but if the expenses are related to a Call Center then it will be considered as a variable cost.

Paper bill in an office or shop would be fixed but in a printing business it would be variable cost (like raw material).
Water in the office is fixed, water used in a soft drink factory is variable.
Stationary in a coaching class is variable because more students mean more but stationary in an office is fixed.

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