Which of the following is a characteristic of variable expenses?

Variable expenses are defined by their fluctuating nature, meaning they can change from month to month based on business activity or production levels. This characteristic makes them less predictable than fixed expenses, which remain constant regardless of business activity. Examples of variable expenses include costs such as materials, labor, and utilities, which can vary based on the volume of goods or services produced.

The correct answer highlights that variable expenses can indeed be harder to forecast because they are not tied to a fixed amount and can vary significantly over time. As a result, businesses often need to analyze trends in sales and production to anticipate variable costs effectively. Understanding this variability is crucial for effective budgeting and financial planning.