A Major Difference Between Committed and Discretionary Fixed Costs Is

question 94

Multiple Choice

A major difference between committed and discretionary fixed costs is that

• A)incurring committed fixed costs is less risky than using discretionary costs.
• B)managers are usually responsible for committed fixed costs but not for discretionary fixed costs.
• C)incurring discretionary fixed costs rather than committed fixed costs gives a company more flexibility in controlling costs.
• D)companies are using more discretionary fixed costs because labor is easier to "remove" than technology.

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