Due to the economic downturn,a company has reduced charitable donations to community groups.This is an example of a ________.
A) variable cost
B) committed fixed cost
C) capacity cost
D) discretionary fixed cost

Question

Quizplus · Accepted Answer

Discretionary fixed costs are non-essential costs that can be easily cut or eliminated, such as charitable donations. This reduction was a choice made by the company in response to the economic downturn, rather than a necessary or committed expense.

Due to the Economic Downturn,a Company Has Reduced Charitable Donations