Discretionary fixed costs
A)have a planning horizon that covers many years.
B)may be reduced for short periods of time with minimal damage to the long-run goals of the organisation.
C)cannot be reduced for even short periods of time without resulting in significant damage to the long-run goals of the organization.
D)are most effectively controlled through the effective utilization of facilities and organization.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are those costs that can be reduced or eliminated in the short term without significantly affecting the long-term goals of the organization. These costs include items such as advertising, employee training, and research and development. While they may contribute to the overall success of the organization, they are not essential to its operations and can be scaled back if necessary.

Discretionary Fixed Costs