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Which of the following is NOT a fixed expense? Movie tickets Internet service Cell phone bill Rental payment

Question

Which of the following is NOT a
fixed expense?
Movie tickets
Internet service
Cell phone bill
Rental payment

Which of the following is NOT a fixed expense? Movie tickets Internet service Cell phone bill Rental payment

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HollyProfessional · Tutor for 6 years

Answer

<p> Cell phone bill</p>

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<p> 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:<br /><br />1. Internet service: This is typically a fixed expense as it usually involves a regular, consistent payment each month, regardless of usage.<br /><br />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.<br /><br />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.<br /><br />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.</p>
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