Which of the following is the best example of a discretionary fixed cost?
A) executive travel costs
B) the cost of leasing machinery
C) licence fees for fleet of vehicles
D) depreciation on a factory building

Question

Quizplus · Accepted Answer

Discretionary fixed costs are expenses that can be adjusted or eliminated at management's discretion, such as executive travel costs. Leasing machinery and license fees for a fleet of vehicles are examples of committed fixed costs, while depreciation on a factory building is an example of a non-discretionary fixed cost.

Which of the Following Is the Best Example of a Discretionary