An example of a discretionary fixed cost for a clothing manufacturer is
A)An annual contract for television advertising cost.
B)A 10-year lease on an office building.
C)Yards of fabrics used.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are those that can be altered in the short term by current managerial decisions. An annual contract for television advertising is a discretionary fixed cost because the company can choose to renew or not renew the contract each year.

An Example of a Discretionary Fixed Cost for a Clothing