Asked by Louie Allard on Apr 29, 2024
Verified
Which is the BEST example of a variable expense?
A) gym membership
B) streaming service subscription
C) electric bill
D) car insurance
Variable Expense
Costs or expenses that change in proportion to business activity.
Electric Bill
A monthly statement charging an individual or household for the consumption of electricity provided by a utility company.
- Distinguish between constant and fluctuating costs.
Verified Answer
JS
Jackson SavageApr 30, 2024
Final Answer :
C
Explanation :
Electric bills vary from month to month based on usage, making them a variable expense. Gym memberships, streaming service subscriptions, and car insurance typically have fixed monthly or annual costs.
Learning Objectives
- Distinguish between constant and fluctuating costs.