Which of the following is correct with regard to discretionary fixed costs? A.Discretionary cost activities typically...

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Which of the following is correct with regard to discretionary fixed costs? A.Discretionary cost activities typically...

Which of the following is correct with regard to discretionary fixed costs?

A.Discretionary cost activities typically include lease rentals, property taxes, and depreciation.

B.All of the choices are true regarding discretionary fixed costs.

C,Discretionary cost activities are normally dictated by long-run management decisions

D.. Discretionary cost activities are usually service oriented.

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Answer 1

Answer #1

Answer (D)

Discretionary fixed cost is cost which incurred at the discretion of management..It is short term cost or can be eliminated or reduced.Example - research cost ,advertisement.employees training.

Lease rental ,tax payments ,depreciation are committed or compulsory charges .They can't be eliminated.

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Answer 2

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