Which term best describes fixed expenses?

Fixed expenses are best described as expenses that are consistently predictable. This means that these types of expenses remain relatively constant over time and are not subject to the fluctuations that can occur with other expenses. Examples of fixed expenses include rent or mortgage payments, insurance premiums, and loan payments. These costs do not vary from month to month, which allows individuals to budget accurately and plan their finances effectively.

In contrast, the other options describe expenses that do not align with the characteristics of fixed expenses. Costs that change each month are considered variable expenses, while variable costs including entertainment further illustrate discretionary spending that can fluctuate. Unexpected costs that occur only occasionally refer to irregular expenses and do not represent the stability associated with fixed expenses. Understanding the nature of fixed expenses helps in financial planning and maintaining a balanced budget.