Management has little or no control over
A)discretionary fixed costs.
B)committed fixed costs.
C)all fixed costs.
D)all of the above.

Question

Quizplus · Accepted Answer

Committed fixed costs are costs that cannot be easily changed within a short period of time, such as rent or long-term contracts. Management has little control over these costs as they are typically already contracted or agreed upon. Discretionary fixed costs, on the other hand, are costs that management has some control over, such as advertising or research and development expenses. Therefore, A and C are incorrect. D is incorrect because management does have control over some fixed costs.

Management Has Little or No Control Over