Only major changes in the scale or scope of operations can change ________ in future periods.Managers can vary spending levels for ________ in the short run.
A) committed fixed costs; capacity costs
B) committed fixed costs; discretionary fixed costs
C) discretionary fixed costs; capacity costs
D) capacity costs; committed fixed costs

Question

Quizplus · Accepted Answer

Committed fixed costs are those that cannot be easily changed in the short term and often relate to the overall scale or scope of operations. Discretionary fixed costs, on the other hand, can be adjusted more easily and include spending that managers can vary in the short run, such as advertising or research and development.

Only Major Changes in the Scale or Scope of Operations