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:

Reporting Entities

Organizations or business entities that are required to prepare and present financial statements to relevant stakeholders, usually following specific reporting standards.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, and operating results of a parent company and its subsidiaries as if they were a single entity.

Capacity To Control

Refers to the ability of an entity to direct the financial and operating policies of another entity so as to benefit from its activities.