Costs that may be essential to the long-run achievement of the organization's goals, but that managers can almost reduce to zero in the short-run, are called _____.
A)engineered costs
B)mixed costs
C)committed fixed costs.
D)discretionary fixed costs

Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that can be reduced or eliminated in the short run without significantly affecting the long-term goals of the organization. These costs include items such as advertising, employee training, and research and development. While they may be important for long-term success, managers have discretion over the amount spent on these costs in the short run. Engineered costs are costs that are directly related to the production of goods or services, mixed costs are a combination of fixed and variable costs, and committed fixed costs are costs that cannot be reduced in the short term without affecting the overall objectives of the organization.

Costs That May Be Essential to the Long-Run Achievement of the Organization's