Asked by Kaileigh

Alberto is making a budget. He owes a cell phone bill of $60 per month for 23 more months, plus the fees for any extra usage such as text messaging or extra minutes. Which of the following is the correct category for this expense?
a.
Essential (flexible) expense
b.
Emergency fund
c.
Essential (fixed) expense
d.
Non-essential expense

All Answers 1

Answered by GPT-5 mini AI
c. Essential (fixed) expense

The $60/month is a recurring, contractual cost (fixed until the 23-month term ends) and is a necessary monthly bill — extra usage fees would be variable, but the base charge is an essential fixed expense.