Which of the Following Would Not Typically Be Classified as a Discretionary

question 78

Multiple Choice

Which of the following would not typically be classified as a discretionary fixed cost?

• A) Equipment depreciation.
• B) Employee development (education) programs.
• C) Advertising.
• D) Outlays for research and development.
• E) Charitable contributions.

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Definitions:

Regressive

A tax system where the tax rate decreases as the taxable amount increases.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.

Investment Income

Income generated from financial assets or investments, such as dividends, interest, or rental income.