Types of Expenditure (Junior Cert Business Studies): Flashcards
📚Flashcards
Practise the cards
12 cards from this deck
ShowHide
Practise the cards
12 cards from this deck
How many types of expenditure are there?
How many types of expenditure are there?
Three
Fixed expenditure definition
Fixed expenditure definition
Regular payments that stay the same regardless of usage
How does usage affect fixed expenditure?
How does usage affect fixed expenditure?
It doesn't - cost stays the same
Fixed expenditure examples
Fixed expenditure examples
Rent, car insurance, TV licence, loans, motor tax
Irregular expenditure definition
Irregular expenditure definition
Payments where amount & timing change based on usage
Irregular expenditure key trait
Irregular expenditure key trait
Amount varies based on usage
Irregular expenditure examples
Irregular expenditure examples
Electricity, groceries, petrol, phone bills, car servicing
Discretionary expenditure definition
Discretionary expenditure definition
Optional spending on wants rather than needs
Discretionary: needs or wants?
Discretionary: needs or wants?
Wants rather than needs
Discretionary expenditure examples
Discretionary expenditure examples
Holidays, Netflix, dining out, concerts, games, gifts
Spending priority order
Spending priority order
Fixed & irregular first, then discretionary
50/30/20 budgeting rule
50/30/20 budgeting rule
50% needs, 30% wants, 20% savings