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3 years ago

Which of the following is a fixed expense?

Social Studies

2 answers:

stiv31 [10]3 years ago

7 0

A fixed expense would be b. a car payment because it does not change and is a set amount you have to pay

lubasha [3.4K]3 years ago

6 0

Answer:

Hi!

The answer would be A, water bill.

Explanation:

Fixed expenses are costs that don't change over short term.

A recurrent fixed expense would be a water bill, as this is classified under "utilities". Utilities are variable elements but they are classified as fixed expenses as these have to be paid every month without excuse and there's no way avoid such payment. Whether you or your parents pay it, <em>it's still something that will always require payment throughout your life</em>.

Car payments are not fixed payments as owning a car is not mandatory, so you can opt out of car payments by switching to public transportation. The only part of owning a car that could be seen as a fixed expense would be the car's insurance, but as explained, you can avoid that by not owning a car.

Clothing is not a fixed payment either as only you can decide how often you buy clothes. If you go say a year without buying new clothes, this would rule it out as a fixed expense.

Finally, transportation is not a fixed payment because there are different means of transportation such as walkig, biking, skating, free fare buses etc, that let you get from place to place for free.

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