Which one of the following budget items would probably be considered a fixed expense?
A. Entertainment
B. Savings
C. Clothing
D. Insurance premiums
I'll be glad to check your answer.
i got b.
No.
Please read your text.
i got D.
D is right.
To determine which one of the budget items would likely be considered a fixed expense, let's go through each option:
A. Entertainment: Entertainment expenses are typically considered discretionary or variable expenses because they can vary from month to month depending on individual choices and preferences.
B. Savings: Savings is not an expense but rather money set aside for future purposes. However, if you are referring to a regular contribution towards savings, it can be considered a fixed expense since you allocate a predetermined amount of money each month.
C. Clothing: Clothing expenses are also typically considered discretionary or variable expenses, as they can vary based on personal choices, fashion trends, and the need for new clothes.
D. Insurance premiums: Insurance premiums are usually considered fixed expenses because they are recurring payments made at regular intervals (monthly, quarterly, or yearly) and are typically set amounts or calculated based on a fixed rate.
Based on this analysis, the budget item that is most likely considered a fixed expense is D. Insurance premiums.