Costs that may be essential to the long- run achievement of the organization's goals, but that managers can almost reduce to zero in the short run, are called:
A) mixed costs
B) engineered costs
C) committed fixed costs
D) discretionary fixed costs

Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that can be adjusted or eliminated in the short term without significantly impacting the organization's long-term goals. They are often related to activities that management can choose to fund or not, such as advertising or research and development.

Costs That May Be Essential to the Long- Run Achievement