TYPES OF EXPENSES BY EMMA LUCCIOLA DURABLE GOODS

TYPES OF EXPENSES BY: EMMA LUCCIOLA

DURABLE GOODS • A category of consumer products that do not need to be purchased frequently because they are made to last for a long time (usually lasting for three years or more). • Examples are washing machines, refrigerators cars, etc. • As an adult these are usually large purchases that may have installments plans for these depending on whether these are like houses or cars.

CONSUMABLE GOODS • Consumables are products that consumers use recurrently, i. e. , items which "get used up" or discarded. • Examples of consumable office supplies are products such as paper, pens, file folders, Post-it notes, and toner or ink cartridges. • These are usually daily, weekly, or monthly type expenses as they are not usually that expensive but buying these in bulk may be frugal.

FIXED EXPENSES • These costs are those that do not fluctuate with changes in production level or sales volume. • They include such expenses as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising. • These are steady and necessary payments made in certain intervals and these must be paid first in your budget plan usually.

VARIABLE OR FLEXIBLE EXPENSES • These are described as expenses that are easily changed, reduced or eliminated. • Spending money on entertainment and clothing represent flexible expenses. Even expenses that must be incurred, such as a grocery bill, s can be considered flexible because the amount spent can vary. • These expenses can vary in your budget if on a tight one you should eliminate what you can to save money and afford the necessities.

DISCRETIONARY EXPENSES • A discretionary expense is a cost which is not essential for the operation of a home or a business. • Example- a business may allow employees to charge certain meal and entertainment costs to the company in order to promote goodwill with employees. • These are only available if all other expenses are paid as a business leader, and if you are a employee using this to your advantage it is important to remember to not go crazy with it as it will reflect poorly on you.