What type of expenses will always incur on a regular monthly basis?

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Fixed expenses are costs that remain constant in amount regardless of the level of business activity or production volume. These expenses are incurred regularly, typically on a monthly basis, and include items such as rent, salaries, and insurance premiums. Because they do not fluctuate with changes in the volume of services or goods provided, it makes them predictable and easier to budget for.

In contrast, variable expenses can change month to month based on the level of production or sales, meaning they are not guaranteed to occur at a set rate. Direct expenses relate specifically to a certain project or department, and can also fluctuate. Indirect expenses are not directly tied to a specific activity or department and can vary as well. Therefore, fixed expenses are the consistent, regular costs that businesses can reliably anticipate each month.

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