Expenditures for discretionary fixed costs are frequently regarded as:
A) strictly a tax write-off.
B) investments for the future.
C) ill advised.
D) variable costs.

Question

Quizplus · Accepted Answer

Discretionary fixed costs refer to long-term investments made by a company, such as capital expenditures and research and development. These investments are made with the expectation of generating future benefits and returns, and are not easily adjustable in the short-term. Therefore, they are considered investments for the future.

Expenditures for Discretionary Fixed Costs Are Frequently Regarded As