Which of the following is not an example of a discretionary fixed cost?
A)research and development
B)training costs
C)lease on office space
D)direct materials

Question

Quizplus · Accepted Answer

Direct materials are a variable cost as they vary with the level of production. Discretionary fixed costs are those that can be controlled or adjusted by management, such as research and development or training costs. The lease on office space is also a discretionary fixed cost as it is a fixed contract that management has control over.

Which of the Following Is Not an Example of a Discretionary