Advertising cost is an example of a
A) committed fixed cost.
B) discretionary fixed cost.
C) mixed cost.
D) engineered cost.

Name: Advertising cost is an example of a A) committed fixed cost. B) discretionary fixed cost. C) mixed cost. D) engineered cost.
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Question

Quizplus · Accepted Answer

Advertising cost is a discretionary fixed cost because it is a cost that can be adjusted in the short-term based on management's discretion and is not directly related to production levels or sales.

Advertising Cost Is an Example of a