Question

An expenditure which increases with an increase in the use of public services by the people.

• A. Optional expenditure
• B. Variable expenditure
• C. Obligatory expenditure
• D. Constant expenditure

Answer 1

The correct option is B

Variable expenditure

Variable expenditure refers to that expenditure which increases with an increase in the use of public services by the people. Expenditures on postal service, telephone service are few examples of variable expenditure.