Question

Which of the following statements best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense? a. It is an obligation to pay, but the spender has some control over its amount. b. It cannot be eliminated in a later budget, in order to save money. c. It is expected to be the same amount every month. d. Bills for services rendered have a higher priority than any other type of expense.

Answer 1

the statement that best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense is: a. It is an obligation to pay, but the spender has some control over its amount Variable expense are the expense that happen depending on how much resource that you use, which is simialrt to the phone billing system

Answer 2

A) It is an obligation to pay, but the spender has some control over its amount.

Explanation:

An essential expense is an important expense required for living. These expenses can be fixed or variable. Fixed expense remains same but variable expense changes.

Here, in the given scenario, the data usage bill is variable as it depends completely on the usage. If the user is using more data, the bill will be more. If the data usage is lower, the bill will be less.

Therefore, option A is the right answer.