It is difficult to determine unused capacity for ________.

Question

Quizplus · Accepted Answer

Discretionary costs are costs that are not directly related to production, such as advertising or research and development. Since these costs are not tied to a specific level of production, it can be difficult to determine what would be considered "unused capacity" for these costs. Variable costs are tied to production levels, and direct engineered costs and marginal costs are more specifically related to individual units of production, so they would not be the best choice for this question.

It Is Difficult to Determine Unused Capacity for ________