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

Question

Quizplus · Accepted Answer

A discretionary fixed cost is a cost that a business chooses to incur, rather than one that is absolutely necessary. Advertising is an example of a discretionary fixed cost because a business can choose whether or not to advertise and how much to spend on advertising. Property taxes and insurance, depreciation, and employee wages, on the other hand, are typically considered necessary fixed costs that a business must incur in order to operate.

Which of the Following Would Be Considered a Discretionary Fixed