What characterizes fixed expenses?

Fixed expenses are characterized by their stability over time, which means they generally remain the same regardless of changes in business activity or production levels. Common examples of fixed expenses include rent, salaries, and insurance premiums. These costs are incurred consistently within a defined period, making them predictable and easier to budget for.

In contrast, other options highlight characteristics that do not apply to fixed expenses. Fluctuating expenses—such as variable costs—change based on activity levels, while unpredictable costs may arise unexpectedly and can vary significantly, which is not the case for fixed expenses. Temporary purchases, too, imply a level of transience that does not align with the concept of fixed costs, as fixed expenses are typically long-term commitments. Thus, the nature of fixed expenses revolves around their consistent and predictable nature over time, which is why the correct answer emphasizes their stability.