Question

If Rahul wants to reduce his monthly spending, he should A get a better job. B reduce his fixed expenses. C reduce his variable expenses. D reduce his fixed and variable expenses.

Answer 1

Answer:

C. reduce his variable expenses.

Explanation:

There are two types of expenses: Variable expenses and Fixed Expenses. Fixed Expenses are the expenses that are fixed for every month and its difficult to reduce these expenses such as house rent, fuel or travel expenses to go for work, utility bills. These are almost fixed for every month and it is difficult to reduce them. On the other hand, variable expense are the expense that vary for every month and can reduce easily. These expenses includes eating outside at restaurants, clothing, enjoying and arranging parties.

Rahul should reduce his variable expense to reduce his spending. This could be the easier way to reduce the expenses and save more. First option is not valid as he want to reduce his spending, this shows that he is satisfied with his current job but worried about extra expenses each month. This is the reason option C is the better choice for him to reduce expense.