Discretionary Expenditures

question 84

Multiple Choice

Discretionary expenditures:

• A)are usually planned for first.
• B)are amounts paid for the use of flexible resources.
• C)are not determined by the organization's level of production.
• D)increase in amount during periods of greater activity.

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Definitions:

Total Variable Cost

The total of all costs that vary with the level of output, including materials, labor, and other expenses that increase as production increases.

Total Cost

The sum of fixed cost and variable cost.

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Plant Size

The physical capacity or output potential of a manufacturing or production facility.