Which of the following describes variable expenses?

Study for the FBLA Introduction To Event Planning Test. Get ready for your exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you succeed!

Variable expenses are costs that change depending on the level of activity or engagement associated with an event, specifically the number of attendees. When planning an event, variable expenses might include costs for catering, materials, or staffing that increase as more people register or attend. For instance, if you are hosting a conference, the per-person cost for food will rise as attendance increases, making these costs variable in nature.

In contrast, fixed expenses remain constant regardless of the number of attendees, such as venue rental or certain administrative costs, which do not fluctuate based on attendance figures. The other choices do not reflect the definition of variable expenses appropriately. Costs associated with event cancellation or those that are fixed for all events do not fit the criteria of variable expenses, as they do not change based on attendance levels.

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