Discretionary costs are costs that are not directly related to the production of goods or services but are still necessary for the function of the business. These costs are usually at the discretion of management and can be adjusted in response to changes in the company's needs or goals. Examples of discretionary costs include advertising and executive training costs. Therefore, the correct choice is D.

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Discretionary Costs

Question 126

Multiple Choice

Discretionary costs:

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

Correct Answer: