Question
Which of the following is NOT a fixed expense? Movie tickets Internet service Cell phone bill Rental payment
Answer
4.2
(262 Votes)
Holly
Professional · Tutor for 6 years
Answer
Cell phone bill
Explanation
Fixed expenses are costs that do not fluctuate with the level of production or sales. They are consistent in amount and are paid on a regular basis. The options given are:1. Internet service: This is typically a fixed expense as it usually involves a regular, consistent payment each month, regardless of usage.2. Cell phone bill: This can be a fixed or variable expense. If the cell phone plan is a flat-rate monthly plan, it's a fixed expense. However, if the bill varies based on usage (like pay-as-you-go plans), it's a variable expense.3. Rental payment: This is a fixed expense, as rent is typically a set amount paid monthly and does not vary with usage or production levels.Based on these definitions, the option that is NOT necessarily a fixed expense is the cell phone bill, as it can vary depending on the type of plan and usage.