ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Are Fixed Expenses? Typical fixed expenses include car payments, mortgage or rent payments, insurance premiums and real estate taxes. Typically, these expenses can’t be easily changed. On the plus side, they’re easy to budget for because they generally stay the same and are paid on a regular basis.

Detailed explanation-2: -Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments.

Detailed explanation-3: -Fixed expenses: These are costs that largely remain constant, such as your monthly rent or mortgage. Variable expenses: These are costs that vary or are unpredictable, such as dining out or car repairs.

Detailed explanation-4: -A fixed expense is a cost that’s typically constant. Fixed expenses are paid at regular intervals-often monthly. Some fixed expenses are what are known as “periodic fixed expenses.” These expenses are fixed and regular, but don’t occur monthly-they may occur quarterly or annually instead, for example.