Discretionary costs are costs that are not necessary to maintain operations and can be adjusted or eliminated at management's discretion. Advertising and executive training costs fall under this category as they are expenses that can be adjusted based on the company's budget and priorities. Option A is describing direct costs, option C is describing mixed costs, and option D is too vague to be a correct choice.

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Discretionary Costs

Question 132

Multiple Choice

Discretionary costs:

A) result from a cause-and-effect relationship between the output and the input
B) include advertising and executive training costs
C) can be variable or fixed in the short run
D) pertain to processes that are detailed

Correct Answer: