Which of the following would not typically be classified as a discretionary fixed cost?
A) Equipment depreciation.
B) Employee development (education) programs.
C) Advertising.
D) Outlays for research and development.
E) Charitable contributions.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are those that are decided at a management level and can be adjusted or eliminated without immediate impact on the company's short-term ability to operate. Equipment depreciation is not a discretionary cost; it is a non-cash expense that reflects the wear and tear on fixed assets over time and is not subject to management discretion in the short term.

Which of the Following Would Not Typically Be Classified as a Discretionary