A _____ expense varies from month to month and includes items like food and utilities.

A variable expense is described as a type of spending that can fluctuate from month to month, depending on usage and other factors. This category includes items such as food, utilities, entertainment, and other costs that are not consistent and can change significantly based on personal choices or needs.

Variable expenses are important to track as they can greatly influence a budget. Unlike fixed expenses, which remain constant (such as rent or a mortgage payment), variable expenses can vary widely. Understanding how these expenses work helps individuals manage their finances effectively, ensuring they can account for changing costs in their monthly budgeting processes.

In contrast, fixed expenses are predictable and do not change month to month, essential expenses usually refer to necessary costs for basic living, and running expenses typically relate to the ongoing costs of maintaining an operation or a business. Thus, identifying variable expenses correctly is key to comprehensive financial planning.