Discretionary Fixed Costs

question 35

Multiple Choice

Discretionary fixed costs:

• A)vary directly and proportionately with the level of activity.
• B)usually arise from annual decisions by management.
• C)have a long-term planning horizon, generally encompassing many years.
• D)are made up of plant, equipment, and basic organizational costs.

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Definitions:

Welded Halves

This term typically refers to two parts that have been joined together permanently by welding.

Allison

A manufacturer known for producing automatic transmissions, especially for heavy-duty vehicles and equipment.

Internal Spur Gear

A type of gear with straight teeth located on the internal surface of a cylindrical or ring-shaped component, used to transmit motion or power within a confined space.

Flex Plate

A metal disc that connects the engine to the torque converter in automatic transmission vehicles, facilitating power transfer.