Discretionary fixed costs arise from annual decisions by management to spend in certain fixed cost areas.

Name: Discretionary fixed costs arise from annual decisions by management to spend in certain fixed cost areas.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discretionary fixed costs are costs that management can control and choose to spend on, such as advertising or research and development. They are not necessarily essential to the operation of the business and can be adjusted or eliminated based on management's decisions.

Discretionary Fixed Costs Arise from Annual Decisions by Management to Spend