Which statement regarding committed and discretionary fixed costs is true?
A) Both discretionary and committed fixed costs preserve flexibility.
B) Both discretionary and committed fixed costs limit flexibility.
C) Discretionary fixed costs preserve management's flexibility.
D) Committed fixed costs preserve management's flexibility.

Question

Quizplus · Accepted Answer

Discretionary fixed costs can be adjusted or eliminated in the short term, preserving management's flexibility, unlike committed fixed costs, which are long-term and harder to change.

Which Statement Regarding Committed and Discretionary Fixed Costs Is True