Which one of the following budget items would probably be considered a fixed expense?
A.entertainment
B.Savings
C.Clothing
D.insurance premiums
i got B what do you think
It could be. But insurance premiums stay the same and are absolutely necessary.
okay Thank you
that isnt it
Its not B. i had the same question and they told me it was wrong. Its D.
I agree with your choice of option B, Savings, as the fixed expense among the given options. Fixed expenses refer to regular payments or obligations that do not typically fluctuate from month to month. They are usually essential and consistent.
To determine which item is a fixed expense, we can analyze the nature of each option:
A. Entertainment: Entertainment expenses tend to vary significantly from one month to another and are considered discretionary expenses. They are not regularly fixed.
B. Savings: Savings would typically fall under the category of a fixed expense. People often set aside a specific amount each month for their savings, making it consistent and regular.
C. Clothing: Clothing expenses can vary greatly depending on an individual's needs, preferences, and changing fashion trends. Hence, it is not a fixed expense.
D. Insurance premiums: Insurance premiums are usually set at a fixed amount and paid regularly, making them a characteristic example of fixed expenses.
Therefore, option D, insurance premiums, is the correct choice for a fixed expense from the given options.