A lump sum amount of money set aside for research and development would be called a ________.
A)purely variable cost
B)discretionary fixed cost
C)committed fixed cost
D)mixed cost

Question

Quizplus · Accepted Answer

A lump sum amount of money set aside for research and development is a discretionary fixed cost. This is because it is a cost that management can choose to incur, depending on their discretionary decision-making power. It is not necessary for the day-to-day operations of a business and can be adjusted or eliminated depending on the company's financial position or strategic goals.

A Lump Sum Amount of Money Set Aside for Research