Which of the Following Is Likely to Be a Discretionary

question 93

Multiple Choice

Which of the following is likely to be a discretionary cost in most organizations?

• A)managerial training programs
• B)managerial labor costs
• C)factory utilities
• D)factory rent

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Definitions:

Peripheral Activities

Operations or tasks that are not central to the main business or objectives of an organization, but may still generate revenue or provide support.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

The portion of net income left over after dividends have been distributed to shareholders, reinvested into the company.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.