Discretionary Costs Are Often Difficult to Control Because
Discretionary costs are often difficult to control because
A) it is difficult to measure the cost.
B) they cannot be changed in the short run.
C) they cannot be changed from period to period.
D) it is difficult to measure the benefits of discretionary activities.
Which of the following is likely to be a discretionary cost in most organizations?
A) managerial training programs
B) managerial labor costs
C) factory utilities
D) factory rent
The level of discretionary costs
A) are set by management for one period at a time.
B) cannot be changed in the short run.
C) are determined when capital investment is undertaken.
D) always varies with sales.
Which of the following is not a factor that directly affects the budget for a discretionary cost?
A) the importance of the activity to the achievement of the organization's goals
B) last period's budget
C) the expected level of operations
D) managerial negotiations in the budgeting process