Which of the following would probably be a discretionary fixed cost for a law firm?
A) salary of receptionist
B) advertising
C) depreciation on furniture and equipment
D) cost of legal forms

Question

Quizplus · Accepted Answer

Advertising is a discretionary fixed cost because it is a cost that is incurred voluntarily and can be adjusted based on the law firm's needs and budget. The salary of a receptionist is a fixed cost but not discretionary because it is necessary for the day-to-day operations of the law firm. Depreciation on furniture and equipment is a fixed cost but not discretionary because it is an accounting expense that must be recognized based on the useful life of the assets. The cost of legal forms is a variable cost because it is directly related to the volume of clients served.

Which of the Following Would Probably Be a Discretionary Fixed