Which of the following is an example of a fixed expense?

Which of the following is an example of a fixed expense?

• A. Groceries
• B. Rent
• C. Car maintenance
• D. Entertainment

Answer: (B)

Fixed expenses are regular, predictable payments that stay the same each period. Rent fits this because your lease sets a specific amount you owe every month, on a regular schedule, regardless of how much you use the space. This makes rent a reliable, non-discretionary cost to plan around in a budget. In contrast, groceries can vary month to month based on meals and prices, car maintenance happens irregularly when repairs are needed, and entertainment spending changes with plans and choices. So rent is the example of a fixed expense because it is a consistent, essential housing obligation.

Fixed expenses are regular, predictable payments that stay the same each period. Rent fits this because your lease sets a specific amount you owe every month, on a regular schedule, regardless of how much you use the space. This makes rent a reliable, non-discretionary cost to plan around in a budget. In contrast, groceries can vary month to month based on meals and prices, car maintenance happens irregularly when repairs are needed, and entertainment spending changes with plans and choices. So rent is the example of a fixed expense because it is a consistent, essential housing obligation.