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Question

Telephone expense is ________ expense.
  1. Variable
  2. Semi-variable
  3. Fixed
  4. None of these

A
Fixed
B
None of these
C
Variable
D
Semi-variable
Solution
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There is a fixed rental for telephone whether you make any call or not. After the free calling limit, there will be charge per call. Therefore, telephone expenses are called as semi variable expenses.

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