Which of the following best defines variable expenses?

Variable expenses are best defined as costs that fluctuate from month to month. This definition encapsulates the nature of variable expenses, as they can change based on usage, necessity, or personal consumption patterns. For instance, expenditures on groceries, dining out, entertainment, and certain utilities typically vary and are influenced by individual lifestyle choices and market conditions.

In contrast, costs that remain constant each month relate to fixed expenses, such as rent or mortgage payments, which do not change with the level of goods or services consumed. Mandatory expenses that cannot be avoided refer to essential costs, but they can include both fixed and variable expenses. Lastly, fixed costs associated with long-term financing typically describe specific financial obligations that do not vary. Understanding variable expenses is crucial for budgeting and financial planning, as they can significantly impact cash flow and savings.