Which of the following is a typical fixed expense?

• A. A monthly subscription service.
• B. Groceries every week.
• C. Gas for the car.
• D. Weekend entertainment.

Answer: (A)

Fixed expenses are regular, predictable bills that stay the same most months. A monthly subscription service fits this because the charge is usually the same each month, regardless of how much you use it. In contrast, groceries vary week to week depending on what you buy, gas changes with how far you drive and fuel prices, and weekend entertainment can differ based on plans. So those are variable expenses. Knowing this helps you plan your budget because fixed costs are the steady part you can count on, while variable costs can change month to month.