If a cost can be reduced to zero in the short run without significantly harming the organization,the cost is a
A)variable cost.
B)committed cost.
C)discretionary cost.
D)product cost.

Question

Quizplus · Accepted Answer

Discretionary costs are optional, non-essential expenses that can be eliminated or reduced without affecting the organization's overall performance. If a cost can be reduced to zero in the short run without significantly harming the organization, it is a discretionary cost. Option A (variable costs) are costs that vary directly with changes in the level of activity, Option B (committed costs) are fixed costs that cannot be easily changed or eliminated, and Option D (product costs) are costs associated with manufacturing a product.

If a Cost Can Be Reduced to Zero in the Short