Discretionary fixed costs are also known as:
A) capacity costs.
B) managed fixed costs.
C) committed fixed costs.
D) mixed costs.

Question

Quizplus · Accepted Answer

Discretionary fixed costs, also known as managed fixed costs, are expenses that can be adjusted or eliminated in the short term without significantly affecting the entity's ability to meet its long-term goals. Examples include advertising, research and development, and training programs. These costs are under the management's control and can be increased or decreased based on the company's financial situation or strategic decisions.

Discretionary Fixed Costs Are Also Known As