which one of the following budget items would probably be considered a fixed expense? A.entertainment B.savings C.clothing D.insurance premiums
A fixed expense is one that you MUST pay regularly. Which of those choices is necessary and always has the same cost?
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D IS THE ANSWER
A fixed expense is an ongoing cost that remains relatively constant from month to month. Based on this definition, the budget item that would probably be considered a fixed expense is:
D. Insurance premiums.
To determine if an expense is fixed, you should assess whether it remains the same or changes minimally on a regular basis. In the case of insurance premiums, these payments are typically set in advance for a specific period, such as monthly or annually. This means that the amount you pay for insurance remains relatively stable during that time without significant fluctuations. Therefore, insurance premiums would generally fall under the category of fixed expenses.