Which of the following is true of discretionary fixed costs?
A) They are used to calculate contribution margin.
B) They depend on the number of units produced.
C) They can be changed easily by management's decision.
D) They increase as output increases.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that can be easily adjusted or eliminated by management's decision. These costs are not directly related to the level of production and do not change with the increase or decrease in the number of units produced.

Which of the Following Is True of Discretionary Fixed Costs