Question

Which of the following would you list as an "Essential (Fixed)" expense?
A. Electricity bill
B. Telephone usage bill
C. Car repair
D. Rent

Answer 1

The best answer would be rent. Because a fixed expense is something that will never change, increase or decrease, no matter what happens. And rent that never changes so that's the answer.

Answer 2

Out of the above choices I would Asnwer. D Rent. Rent is an Essential (fixed) expense. The other expenses electricty, telephone and car repair are all variable expenses because they normally are net set rates every month. Due to the changng of amounts these expenses fluxtuate not allowing thme to be a fixed expense like rent is.