Which of the Following Expenses Is an Example of a Discretionary

question 53

Multiple Choice

Which of the following expenses is an example of a discretionary fixed expense?

• A)investment in production equipment
• B)investment in the factory
• C)electricity costs
• D)employment costs

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Definitions:

Fundamental Analysis

A method of evaluating a security by attempting to measure its intrinsic value through examining related economic, financial, and other qualitative and quantitative factors.

Present Value

The value of an expected income stream determined as of the date of valuation.

Overvalued Stocks

Stocks with market prices that are higher than their intrinsic value, often due to speculative demand rather than underlying company fundamentals.

Production Techniques

Methods and processes used in the transformation of inputs into outputs (goods or services).