Which of the following best describes a fixed expense?

A fixed expense is best described as consistent charges incurred regularly. These expenses remain steady over time regardless of changes in the level of goods or services produced. Examples of fixed expenses include rent, salaries, insurance premiums, and mortgage payments. These costs do not fluctuate based on production levels or monthly activity, which is why they are predictable and can significantly impact budgeting and financial planning.

Other options, such as costs that vary with production levels, refer to variable expenses, which change depending on the quantity of output. Similarly, costs that can change monthly and expenses that can be avoided at any time suggest a variability in costs that is not characteristic of fixed expenses. Fixed expenses are defined by their regularity and consistency, making them a critical part of any financial overview.