Of the costs listed below,which would most likely be considered as a discretionary fixed cost?
A) Depreciation of factory building.
B) Property taxes for factory.
C) Insurance for the factory building.
D) Research costs for new manufacturing products.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are expenses that are usually under the control of management and can be adjusted on a short-term basis. Research costs for new manufacturing products would fall under this category as they are discretionary and can be adjusted based on the company's current financial situation and priorities. The other options are either fixed costs that cannot be easily adjusted (depreciation and property taxes) or variable costs (insurance) that fluctuate with changes in production levels.

Of the Costs Listed Below,which Would Most Likely Be Considered