When it comes to budgeting, which of the following is considered a fixed expense?

A fixed expense is an expense that will be the same total amount regardless of changes in the amount of sales, production, or some other activity. A good example of this is rent or a mortgage.

Fixed expense refers to any expense that doesn’t change from time to time. Examples of these expenses include utility bills, loan payment, and mortgage or rent payment, real estate, insurance premium and many more.

Further Explanation

Fixed expenses are paid regularly. It can be paid weekly, monthly, or from year to year.  Fixed expenses cannot be changed easily.

These expenses can be budget easily because they are paid regularly. Some typical examples of fixed expenses are discretionary, for instance, gym membership, etc.

Fixed expenses are bills paid each month but its cost can still be lower. If you subscribed for a service that you don’t normally use, you can decide to opt for an alternate plan at a lower cost.

For example, you can consider opting for a cheap gym membership or cheaper streaming service.

It is possible to save more money every month if you lower your fixed expenses.

Lists of categories that can be part of your expenses include:Bank feesDebt payment for a debt repayment planMortgagesCondo fee/strata feeUtility bills (examples are water, electricity, cable, cell and many more)LeaseProperty taxes (if paying every month)Vehicle insurance (if paying every month)Sales expenses ( including credit card fees)

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When it comes to budgeting which of the following is considered a fixed expense  Is a car payment a fixed expense or a variable expense

KEYWORDS:

fixed

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Ithink the answer is b