Which of the following is considered a fixed expense in a landscaping business?

• A. Office Rent
• B. Wages for Seasonal Helpers
• C. Fuel for Equipment
• D. Marketing Expense Spikes

Answer: (A)

Fixed expenses are costs that stay the same month to month regardless of how much work you do. Office rent is a classic fixed expense because it’s a set monthly lease payment you owe whether you’re busy with landscapes or slow. Wages for seasonal helpers vary with how much work you have, so they’re variable costs. Fuel for equipment changes with how much you operate, making it another variable cost. Marketing expense spikes can be irregular and don’t represent steady, predictable payments, so they aren’t fixed. Therefore, the office rent is the fixed expense.