Discretionary fixed costs have direct relationships with levels of capacity or output activity.

Name: Discretionary fixed costs have direct relationships with levels of capacity or output activity.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discretionary fixed costs do not have a direct relationship with levels of capacity or output activity; they are set by management decisions and can be adjusted or eliminated without affecting the company's operational capacity.

Discretionary Fixed Costs Have Direct Relationships with Levels of Capacity