Discretionary fixed costs
A) cannot be easily changed.
B) often involve a long-term contract.
C) can be changed relatively easy at management discretion.
D) increase as output increases.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are fixed costs that management has some discretion over, meaning they can be adjusted relatively easily. These costs are not necessarily tied to production or a long-term contract, and may include things like advertising or research and development expenses.

Discretionary Fixed Costs