Which expense is NOT categorized as fixed?

Which expense is NOT categorized as fixed?

• A. Rent payment
• B. Car payment
• C. Monthly subscription
• D. Grocery bills

Answer: (D)

Grocery bills are considered a variable expense rather than a fixed expense. Fixed expenses are regular, recurring costs that do not change significantly over time, such as rent payments, car payments, and monthly subscriptions. These types of expenses generally remain consistent each month and can be easily budgeted. In contrast, grocery bills fluctuate based on individual needs, dietary choices, and shopping habits. One month, the grocery bill may be higher due to purchasing special items or more household members, while the next month it may decrease. This variability makes grocery expenses harder to predict and categorize as fixed. Understanding the difference between fixed and variable expenses is crucial for effective budgeting and financial planning.

Grocery bills are considered a variable expense rather than a fixed expense. Fixed expenses are regular, recurring costs that do not change significantly over time, such as rent payments, car payments, and monthly subscriptions. These types of expenses generally remain consistent each month and can be easily budgeted.

In contrast, grocery bills fluctuate based on individual needs, dietary choices, and shopping habits. One month, the grocery bill may be higher due to purchasing special items or more household members, while the next month it may decrease. This variability makes grocery expenses harder to predict and categorize as fixed. Understanding the difference between fixed and variable expenses is crucial for effective budgeting and financial planning.