Discretionary fixed costs:
A) vary directly and proportionately with the level of activity.
B) have a long-term planning horizon,generally encompassing many years.
C) are made up of plant,equipment,and basic organizational costs.
D) usually arise from annual decisions by management.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that can be easily adjusted or eliminated by management decisions, usually on an annual basis. Examples include advertising, research and development, and employee training. These costs are not directly related to the level of activity and do not have a long-term planning horizon.

Discretionary Fixed Costs