An expense such as advertising could be considered a discretionary fixed cost.

Name: An expense such as advertising could be considered a discretionary fixed cost.
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Question

Quizplus · Accepted Answer

A discretionary fixed cost is an expense that a company can control and choose to incur or not. Advertising is a cost that a company may choose to reduce or eliminate in order to manage their budget. However, it is still a fixed cost because it does not vary with the level of production or sales.

An Expense Such as Advertising Could Be Considered a Discretionary