Management has little or no control over
A) committed fixed costs.
B) discretionary fixed costs.
C) all fixed costs.
D) variable costs.

Question

Quizplus · Accepted Answer

Committed fixed costs are expenses that must be paid regardless of the level of production or sales, such as rent or salaries. Management has little or no control over these costs. Discretionary fixed costs, on the other hand, are costs that management can control, such as advertising or research and development expenditures. Variable costs are costs that vary with the level of production or sales, such as raw materials or labor.

Management Has Little or No Control Over