Discretionary fixed costs:
A)vary directly and proportionately with the level of activity.
B)have a long-term planning horizon,generally encompassing many years.
C)are made up of plant,equipment,and basic organizational costs.
D)none of the above.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that are not directly tied to production or sales volume and can be adjusted or eliminated in the short term. They are generally associated with expenses such as advertising and promotional campaigns, research and development, and management training. Therefore, they do not vary directly and proportionately with the level of activity and are not made up of plant, equipment, and basic organizational costs. Additionally, their planning horizon is typically short-term, generally covering a year or less.

Discretionary Fixed Costs