Which one of these auto expenses would be considered variable? A. Insurance premiums B. Vehicle registration renewal C. Gasoline D. Loan payments

C. Gasoline

The cost of gasoline is a variable expense because it can change based on how much you drive and the fluctuating price of fuel. The more you use your vehicle, the more fuel you will need to purchase, which means your expense for gasoline will vary from month to month. Additionally, gasoline prices can swing dramatically due to market conditions, seasonal changes, and geopolitical events, which also contribute to its variability.

Variable expenses are costs that can change over time or depending on usage. In contrast to variable expenses, there are fixed expenses which remain the same over a period of time regardless of how much you use a product or service. Fixed expenses are predictable and constant.

A. Insurance premiums are generally a fixed expense because you pay the same amount every month or annually based on your policy.

B. Vehicle registration renewal is typically an annual or biennial fixed expense because it's a set fee that you pay to keep your vehicle legally registered.

D. Loan payments are usually fixed expenses as well. When you take out a loan for a car, you'll often have a fixed payment schedule with equal payment amounts throughout the life of the loan.

Understanding the difference between variable and fixed expenses is important for budgeting and financial planning. Variable expenses are often the ones you can control or adjust to save money, while fixed expenses are usually non-negotiable and must be paid as agreed.