A Discretionary Fixed Cost

question 103

Multiple Choice

A discretionary fixed cost

• A)remains the same per unit regardless of the level of activity.
• B)increases as the level of activity increases.
• C)can be changed in the short run.
• D)can be changed over the long run.

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Definitions:

Withdraw

The act of removing funds from a bank account or the cessation of investment in a particular asset or undertaking.

Retire

The act of withdrawing from one's position or profession, often marking the end of one's career.

Invested Funds

Money or capital that has been invested in a business, project, or financial asset, often seeking to generate returns.

Annuity

A financial product that provides a series of payments made at equal intervals, which can be used as a retirement income strategy.