Which of the following describes variable expenses?

Variable expenses refer to costs that can change from month to month based on usage or consumption. This means that unlike fixed expenses, which are consistent in amount and occur regularly (such as rent or loan payments), variable expenses can rise or fall depending on how much of a service is used or purchased. Common examples of variable expenses include utilities, groceries, entertainment, and transportation costs, all of which can vary significantly based on personal choices and circumstances.

The other options describe different types of expenses. Fixed costs are expenses that do not change regardless of usage, such as monthly rent or mortgage payments. One-time expenses, which may be unpredictable, are not categorized as variable because they occur infrequently rather than on a fluctuating basis. Mandatory payments like rent and loans are also fixed since they do not vary month to month. Understanding variable expenses is essential for personal budgeting and financial planning, as it allows individuals to estimate monthly costs more accurately based on their lifestyle and consumption habits.