Question

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

Answer 1

Answer:

b)Loan payment on a new car

Explanation:

These are the options for the question;

a)Dining out at local restaurants

b)Loan payment on a new car

c)Expenses for new clothes

d)Postponing a purchase for a big-screen TV

Expenses in finance is the cost incurred or an ouflow of cash in order to get a value back such as money spent on rent, feeding, buying new cloth and others. Expenses could be classified as Variable, fixed, operating, non-operating However, Expenses can be adjusted.

All the listed Expenses can be be easily adjusted except loan payment on a new car because, the loan payment on the new car is expenses inform of interest and can be classified as "non-operating"expense and doesn't go with the main activities like other expenses, so it must be deducted at agreed period.hence,it can be difficult to adjust.