Which of the following is an example of a fixed expense?

Rent is an example of a fixed expense because it is a regular payment that does not fluctuate from month to month. Fixed expenses, like rent, are predictable and often contractual, meaning the amount is agreed upon for a specific period, such as a lease term. This consistency allows individuals to plan their budgets with certainty since they know exactly how much they will spend on rent each month.

In contrast, grocery bills, utility bills, and gasoline costs can vary significantly from month to month due to varying consumption, price changes, and other factors, making them variable expenses rather than fixed. Understanding the distinction between fixed and variable expenses is crucial for effective budgeting and financial planning.