Which Statement Regarding Committed and Discretionary Fixed Costs Is True

question 40

Multiple Choice

Which statement regarding committed and discretionary fixed costs is true?

• A) Both discretionary and committed fixed costs preserve flexibility.
• B) Both discretionary and committed fixed costs limit flexibility.
• C) Discretionary fixed costs preserve management's flexibility.
• D) Committed fixed costs preserve management's flexibility.

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Definitions:

External-Stable Attribution

The process of attributing an event or outcome to factors outside the individual that are consistent and unchanging over time.

Internal-Unstable Attribution

An explanation for behavior emphasizing internal but changeable factors, such as mood or effort.

Lecturer

A person who gives talks or speeches on specific subjects, often in an academic or educational setting.

Cognitive Miser

A model of social cognition that characterises people as using the least complex and demanding cognitions that are able to produce generally adaptive behaviours.