Which of the following would be considered a discretionary fixed cost?
A)Property taxes and insurance
B)Advertising
C)Employees wages
D)Depreciation

Question

Quizplus · Accepted Answer

Discretionary fixed costs are expenses that can be controlled or adjusted by management, even though they are fixed in nature. Advertising is a good example of this because the company can choose to increase or decrease spending on advertising depending on their current goals or financial situation. Property taxes and insurance would be considered fixed costs, but not discretionary because they cannot be adjusted by management. Employees wages and depreciation would be considered fixed costs, but not discretionary because they are necessary for the operation of the business and cannot be easily adjusted.

Which of the Following Would Be Considered a Discretionary Fixed