What are discretionary fixed costs?
A) They vary directly and proportionately with the level of activity.
B) They have a long-term planning horizon, generally encompassing many years.
C) They are made up of plant, equipment, and basic organizational costs.
D) None of these options.

Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that can be easily reduced or eliminated without significantly impacting the operations of a business, such as advertising, employee training, or research and development. They do not vary directly with the level of activity, have a shorter planning horizon, and are not related to plant, equipment or basic organizational costs.

What Are Discretionary Fixed Costs