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__________ is considered a variable operating expense of an automobile.?

__________ is considered a variable operating expense of an automobile.
A. Maintenance

B. Depreciation

C. Interest on auto loan

D. Insurance
 
 
Most consumer complaints are resolved by:
A. legal action.

B. assistance from a government agency.

C. contacting a company's headquarters.

D. returning to the place of purchase
 
A common financial benefit of home ownership is:
A. increased property value.

B. a low security deposit.

C. tax deductibility of the down payment.

D. amortization of the growth of equity.
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2 Answers

Gas is a variable expense.  Maintenance is variable because of the unknown timing. Other costs are fixed in nature due to known timing and consistent level of costs incurred.
Hi Nina;
__________ is considered a variable operating expense of an automobile.
A. Maintenance...This is definitely a variable operating expense.  The more a car is driven, the more often the oil-and-lube must be executed, as well as purchase of new tires, as well as the 30,000 mile servicing, etc.

B. Depreciation...This is primarily dependent on age.  However, depreciation can be accelerated by other factors such as appropriate care of the vehicle.  However, depreciation is not an operating expense.  Rather it is an issue of capital value to consider when selling the vehicle.

C. Interest on auto loan...This is fixed at the time of purchase.  NOT A VARIABLE.

D. Insurance...This can vary during the life of the car.  But it does not have to.


Most consumer complaints are resolved by:
A. legal action.

B. assistance from a government agency.

C. contacting a company's headquarters.

D. returning to the place of purchase...Although I have never studied this issue in an academic environment, I have worked in retail for a long time.  Most complaints are resolved by returning the product to the store.  Occasionally, legal actions are served and filed.  Once in a while a government agency, such as department of consumer affairs, is contacted by the consumer.  It is very rare that a customer takes issues to corporate headquarters, but it happens.

A common financial benefit of home ownership is:
A. increased property value...Property does not always go up in value.  Sometimes it goes down.  However, it is a common benefit of home ownership to have a property increase in value.

B. a low security deposit...A security deposit it made when renting a home.  When a home is purchased, a down-payment is made.  This is typically 10-15% of the value of the home.  A security deposit on a rental is NOT rent.  It is an advanced payment against any damage the tenant may inflict on the property (e.g., window-breaking, etc.).

C. tax deductibility of the down payment.  Although I am not a tax expert, to my knowledge, it is not the down payment which is tax deductible, but rather the interest on the mortgage.

D. amortization of the growth of equity...Amortization means that as the mortgage is paid, the equity in the home grows.  However, the first half of the mortgage is typically for payments which are applied toward interest.  The second half pays-down the value of the loan.  Not everyone remains in the same home for such a long time.