6
QuizMultiple Choice

Topic Test

Question 6 • POP Financial Math 26/27

Which of the following statements best gives the reasons that a data usage bill for a smart phone is an essential (variable) expense?

Answer
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.

Explanation

A data usage bill is an obligation because the customer must pay for the service used, but the amount can vary with how much data is consumed or the plan chosen. That matches choice a: “It is an obligation to pay, but the spender has some control over its amount.” A bill that is expected to be the same every month would be a fixed expense, not a variable one.

AI-written and checked against the verified answer.

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