An Example of a Discretionary Fixed Cost Is

question 25

Multiple Choice

An example of a discretionary fixed cost is

• A)research and development costs.
• B)lease on warehouse space.
• C)sales commissions.
• D)number of bolts used.

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Definitions:

Master Budget

The master budget is a comprehensive financial planning document that includes all of a company's budgeted financial statements and operating plans for a specific period.

Raw Materials

The basic materials and components used in the production processes of manufacturing goods.

Finished Goods Inventory

The completed products that are ready for sale but have not yet been sold.

Cash Collections

The process of gathering all monies owed to a company by its customers, reflecting inflow of cash.