Amounts spent for charitable contributions are an example of a(n):
A)committed ﬁxed cost.
B)committed variable cost.
C)discretionary ﬁxed cost.
D)discretionary variable cost.
E)engineered cost.

Question

Quizplus · Accepted Answer

Charitable contributions are a discretionary cost because they are not necessary for the normal operations of a business and are at the discretion of management. They are considered a fixed cost because the amount allocated for charitable giving is predetermined and does not vary based on production levels or sales volume.

Amounts Spent for Charitable Contributions Are an Example of A(n)