Question

Heather Oak is trying to prepare a personal budget and has identified the following list of monthly costs. Identify each cost as fixed, variable, or mixed. Indicate a possible cost driver for any variable or mixed cost.

Rent.
Utilities.
Car payment.
Cell phone bill.
Gasoline.
Cable bill.
Groceries.
Dining out.

Answer 1

Answer:

Cost                     Nature            Cost driver

Rent                     Fixed                Area per ft

Utilities                 Variable             Units used per activity

Car Payment        Variable             Km. run

Cell phone bill      Variable             Charges peer min of usage

Gasoline               Variable             Usage per in ltr.

Cable Bill              Fixed                 Number of connected devices

Groceries             Variable               Usage per day

Dining Out            Variable              Number of days dined out