Telephone expense is . . . . . . . . expense.

A fixed expense is an expense that does not change in direct proportion to the level of business activity. For example, the rent for a factory is a fixed expense, because the factory will always have to pay rent, regardless of how many products it produces.

In the case of telephone expense, it is a variable expense because it changes in direct proportion to the level of business activity. For example, if a company makes more phone calls, it will have to pay more for telephone service.

I hope this helps! Let me know if you have any other questions.