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

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

Explanation: A smartphone data bill is essential (necessary) but the dollar amount can vary with usage or by changing plans, so it’s an essential variable expense.