________ have no obvious relationship to levels of output activity,but are determined as part of the periodic planning process.
A) Discretionary fixed costs
B) Committed fixed costs
C) Capacity costs
D) Engineered costs

Question

Quizplus · Accepted Answer

Discretionary fixed costs are expenses that a company chooses to undertake, such as advertising or research and development. They are not directly linked to the production or sales volume, and the company has some control over them. They are part of the planning process and can be adjusted in response to changes in the business environment. Committed fixed costs, by contrast, are obligations that a company has already incurred and cannot easily modify. Capacity costs are incurred to maintain the production capability of a firm, and engineered costs are expenses that can be directly associated with a particular unit of output.

________ Have No Obvious Relationship to Levels of Output Activity,but