Which of the following statements is true concerning discretionary costs?
A)Discretionary costs cannot be avoided in the short run.
B)Discretionary costs are usually essential for achieving long-run goals.
C)Discretionary costs include payments to government agencies.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

Discretionary costs are expenses that can be controlled or reduced in the short run without compromising the basic business operations. These costs are usually not essential for immediate survival, but they are necessary for achieving long-term goals. Examples of discretionary costs include marketing expenses, research and development expenditures, and employee training programs. Payments to government agencies, on the other hand, are typically considered fixed costs or mandatory expenses that cannot be avoided. Therefore, option B is the correct answer.

Which of the Following Statements Is True Concerning Discretionary Costs