Which of the following would be considered a discretionary fixed cost?

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Answer 1

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Answer #1

OPTION BOTH A AND C.

Discretionary fixed cost are those cost which can be managed by the management during the period.

Internship for student are discretionary fixed cost and can be easily managed by the management.

Depreciation on equipment is a fixed cost but can be managed and it's a fixed item and it cannot be changed by the management.

Advertisement cost is a discretionary fixed cost because management takes the decision whether to spend amount on advertisement or not.

If you have any doubts please comment on the answer.

Answer 2

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